Consider the following scenario to answer the next four questions: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Joey's opportunity cost of baking 1 pie?
A) 4 pies
B) 2 pies
C) 1 pie
D) 1 loaf of bread
E) 1/2 loaf of bread

Question

Quizplus · Accepted Answer

Joey's opportunity cost of baking 1 pie is 1 loaf of bread. This is because if Joey bakes 1 pie, he could have instead baked 1 loaf of bread in the same amount of time.

Consider the Following Scenario to Answer the Next Four Questions