Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Cindy's opportunity cost of producing 1 taco is
A) 3/4 of a pizza.
B) 1 pizza.
C) 30 pizzas.
D) 40 pizzas.
E) 1 1/3 tacos.

Question

Quizplus · Accepted Answer

Cindy's opportunity cost of producing 1 taco is the number of pizzas she could have produced instead of the 1 taco. From the given information, in one hour, Cindy can produce either 30 pizzas or 40 tacos. Thus, her opportunity cost of producing 1 taco is 30/40 or 3/4 of a pizza. Option A is the correct choice.

Scott and Cindy Both Produce Only Pizza and Tacos