Table 2.1
-A group of people has formed a house cleaning and yard maintenance business.The number of houses or yards that they can clean or maintain in any given day is depicted in Table 2.1.The opportunity cost of cleaning the second house in a day is
A) 1 yard maintained.
B) 2 yards maintained.
C) 3 yards maintained.
D) 18 yards maintained.

Question

Table 2.1
-A group of people has formed a house cleaning and yard maintenance business.The number of houses or yards that they can clean or maintain in any given day is depicted in Table 2.1.The opportunity cost of cleaning the second house in a day is
A) 1 yard maintained. 
B) 2 yards maintained. 
C) 3 yards maintained. 
D) 18 yards maintained.

Quizplus · Accepted Answer

The opportunity cost is the benefit forgone of the next best alternative. In this case, if the group cleans the second house in a day, they will lose the opportunity of maintaining two yards. Therefore, the opportunity cost of cleaning the second house in a day is 2 yards maintained. Choice B is the correct answer.

Table 2.1 -A Group of People Has Formed a House Cleaning and Cleaning