Helen gives up the opportunity to bake 40 cakes for each room she paints; Josh can paint one room in the time it takes him to bake 60 cakes.The opportunity cost of a cake for Josh is

Question

Quizplus · Accepted Answer

The opportunity cost of a cake is the value of the next best alternative that is forgone in order to produce one cake. In this scenario, for Josh, the next best alternative to baking a cake is painting a room because he can paint one room in the time it takes him to bake 60 cakes. Therefore, the opportunity cost of baking one cake for Josh is painting 1/60 of a room. Thus, the answer is C.

Helen Gives Up the Opportunity to Bake 40 Cakes for Each