Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale.In 1 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?
A) 1 cookie
B) 1 brownie
C) 0.5 cookie
D) 0.5 brownie

Question

Quizplus · Accepted Answer

To find Mark's opportunity cost to produce one brownie, we need to calculate how many cookies he could have made instead of the brownie. In the same time it takes to make 40 brownies, Mark could have made 80 cookies (since he can make 20 cookies in the same time he makes 40 brownies). Therefore, Mark's opportunity cost of making one brownie is 2 cookies (80 cookies/40 brownies). This means that for every brownie Mark produces, he is giving up the opportunity to make 2 cookies. Therefore, the best choice is C.

Mark and Julie Are Going to Sell Brownies and Cookies