Your friend Sam has been asked to prepare appetizers for the university reception. She has an unlimited
Question:
a. What is Sam’s opportunity cost of making one mini-sandwich?
b. What is Sam’s opportunity cost of baking one melon appetizer?
c. Suppose the reception has been postponed, and Sam has an extra 4 hours to prepare. What is the opportunity cost of making one mini-sandwich now?
d. Suppose the reception has been postponed, and Sam has an extra 4 hours to prepare. What is the opportunity cost of making one melon appetizer now?
e. Suppose Sam’s friend Chris helps by preparing the melon slices, increasing Sam’s productivity to 300 mini-sandwiches or 300 melon appetizers per hour. What is the opportunity cost of making one mini-sandwich now?
f. Suppose Sam’s friend Chris helps by pre-paring the melon slices, increasing Sam’s productivity to 300 mini-sandwiches or 300 melon appetizers per hour. What is the opportunity cost of making one melon appetizer now?
Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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