Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Scott's opportunity cost of producing 1 taco is
A)2 pizzas.
B)2 tacos.
C)20 pizzas.
D)1 pizza.
E)1/2 of a pizza.

Question

Quizplus · Accepted Answer

Scott's opportunity cost of producing 1 taco is the amount of pizzas he forgoes to produce 1 taco. Since Scott can produce 20 pizzas or 40 tacos in one hour, the opportunity cost of 1 taco is 20 pizzas / 40 tacos = 1/2 pizza.

Scott and Cindy Both Produce Only Pizza and Tacos