Conan O'Brien hosts the Conan show and Andy Richter, his sidekick, writes for it. Conan needs 4 hours to rehearse and host a good show. It takes Andy 10 hours to do the same. Conan writes one usable joke in an hour, but Andy needs 2 hours to do the same. Andy's opportunity cost of writing a single usable joke is:
A) 0.2 units of hosting.
B) 0.25 units of hosting.
C) 0.5 units of hosting.
D) 1 unit of hosting.

Question

Quizplus · Accepted Answer

Andy needs 2 hours to write a single usable joke, while Conan needs 1 hour. So, Andy's opportunity cost of writing a single usable joke is 1 hour of hosting, which is 0.25 units of hosting (since Conan needs 4 hours to host a good show).

Conan O'Brien Hosts the Conan Show and Andy Richter, His