Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves.If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?
A)2.5 silk leaves
B)10 silk leaves
C)25 silk leaves
D)55 silk leaves

Question

Quizplus · Accepted Answer

To find the opportunity cost of producing an additional 10 silk roses, we have to calculate how many silk leaves Bella must give up for these extra 10 silk roses.

From the given information, Bella can produce 70 silk roses and 55 silk leaves together. Therefore, to get 10 additional silk roses, she would have to give up some silk leaves.

Let's find out how many silk leaves she would have to give up: 
For every 10 silk roses, Bella would give up (80-55)/20 = 1.25 silk leaves 
So, for an additional 10 silk roses, Bella would give up 1.25 x 10 = 12.5 silk leaves

Therefore, the opportunity cost of producing an additional 10 silk roses is 12.5 or approximately 25 silk leaves.

The best choice is (C) 25 silk leaves.

Bella Can Produce Either a Combination of 60 Silk Roses