Refer to the table below. Corey's opportunity cost of delivering of a pizza is making: $$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Pizzas } \
\text { Made } \
\text { Per Hour }
\end{array} & \begin{array} { c }
\text { Pizzas } \
\text { Delivered } \
\text { Per Hour }
\end{array} \
\hline \text { Corey } & 12 & 6 \
\hline \text { Pat } & 10 & 15 \
\hline
\end{array}$$
A)6 pizzas.
B)12 pizzas.
C)2 pizzas.
D)1/2 of a pizza.

Question

Refer to the table below. Corey's opportunity cost of delivering of a pizza is making: $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Pizzas } \
\text { Made } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Pizzas } \
\text { Delivered } \
\text { Per Hour }
\end{array} \
\hline \text { Corey } & 12 & 6 \
\hline \text { Pat } & 10 & 15 \
\hline
\end{array}$$
A)6 pizzas.
B)12 pizzas.
C)2 pizzas.
D)1/2 of a pizza.

Quizplus · Accepted Answer

The opportunity cost of delivering one pizza for Corey is giving up the production of 2 pizzas (12/6). Pat's opportunity cost of delivering one pizza is giving up the production of 2/3 of a pizza (10/15). Therefore, Corey has a lower opportunity cost in delivering pizzas and should focus on that while Pat should focus on making pizzas. Corey's best choice would be to deliver 2 pizzas, as it has an opportunity cost of 4 pizzas (giving up the potential production of 8 pizzas) while for Pat, delivering 2 pizzas has an opportunity cost of 4/3 of a pizza (giving up the potential production of 8/3 pizzas), which is higher than Corey's. Hence, Corey's best choice is to deliver 2 pizzas.

Refer to the Table Below A)6 Pizzas