For each room she paints Helen gives up the opportunity to bake 40 cakes.And, for each room he paints, Josh gives up the opportunity to bake 60 cakes.What can be concluded regarding opportunity cost?

Question

Quizplus · Accepted Answer

The opportunity cost of an action is what is given up to perform that action. Since Josh gives up the opportunity to bake 60 cakes for each room he paints, compared to Helen's 40 cakes, it means Helen gives up less to paint a room. Therefore, the opportunity cost of painting is lower for Helen, making the opportunity cost of baking cakes lower for Josh, as he gives up more (in terms of painting rooms) to bake cakes.

For Each Room She Paints Helen Gives Up the Opportunity