In the period of one week, Tetah can knit 15 sweaters or bake 480 cookies.What is Tetah's opportunity cost per cookie?

Question

Quizplus · Accepted Answer

Opportunity cost measures the value of the next best alternative forgone. In this case, Tetah's opportunity cost per cookie is the number of sweaters she could have knitted in the time it took her to bake 480 cookies. Since Tetah can knit 15 sweaters in a week, in the time it takes her to bake 480 cookies, she could have knitted 480/15 = 32 sweaters. Therefore, the opportunity cost per cookie is 1/32 of a sweater. The best choice is D because it provides the correct answer and explanation of the opportunity cost per cookie.

In the Period of One Week, Tetah Can Knit 15