Question: If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her

If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. What is Leo's opportunity cost of making a pound of fudge?
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Opportunity cost is the value of the next best alternative that is foregone when making a choice In ... View full answer
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