Consider the following scenario to answer the questions that follow.
Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake one loaf of bread and one hour to make one pie. Joey takes four hours to bake one loaf of bread and four hours to make one pie.
-What is Joey's opportunity cost of baking a pie?
A) 4 pies
B) 2 pies
C) 1 pie
D) 1 loaf of bread
E) 1/2 loaf of bread

Question

Quizplus · Accepted Answer

Joey's opportunity cost of baking a pie is the amount of bread he could have baked in the same time. Since it takes Joey 4 hours to bake a pie and 4 hours to bake a loaf of bread, the opportunity cost of baking a pie is 1 loaf of bread.

Consider the Following Scenario to Answer the Questions That Follow