ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peter can choose either an apple or a candy bar. He picks the candy bar. What is is his opportunity cost?
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apple
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candy bar
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The opportunity cost of one more candy bar is ½ of a bag of peanuts. The opportunity cost of one more bag of peanuts is 2 candy bars. These opportunity costs are constant.
Detailed explanation-2: -The price of a music download is $1. This is found by dividing the $20 budget by the 20 downloads he can obtain per month. $1 = $20/20. The opportunity cost of 1 music download is the number of candy bars given up to get it.
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