Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale.In one day,Mark can make 40 brownies or 20 cookies,and Julie can make 15 brownies or 15 cookies.What is Mark's opportunity cost to produce one brownie?

Question

Quizplus · Accepted Answer

To calculate opportunity cost, we need to look at the trade-off between two options. In this case, we want to know the cost of producing one brownie in terms of cookies forgone.

Mark can make 40 brownies or 20 cookies, so the opportunity cost of producing one brownie for him is:

1 brownie = 20/40 = 0.5 cookies

Julie can make 15 brownies or 15 cookies, but we only need to consider the cost of cookies since we want to find out the opportunity cost of producing brownies in terms of cookies. Therefore, the opportunity cost of producing one brownie for Julie is:

1 brownie = 15/15 = 1 cookie

So, Mark's opportunity cost of producing one brownie is lower than Julie's. Therefore, the best choice is to have Mark produce the brownies and Julie produce the cookies.

Therefore, the answer is C) 0.5 cookie.

Mark and Julie Are Going to Sell Brownies and Cookies