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 Rachel's opportunity cost of baking 1 pie?
A) 2 pies
B) 1 pie
C) 1 loaf of bread
D) 1/2 loaf of bread
E) 2 loaves of bread

Question

Quizplus · Accepted Answer

Rachel's opportunity cost of baking 1 pie is 1/2 loaf of bread because she could bake 1 loaf of bread in the 2 hours it takes to bake 2 pies.

Consider the Following Scenario to Answer the Next Four Questions