contestada

If a family spends its entire budget in a given time frame, the family can afford either 85 cans of vegetables or 45 frozen pizzas. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of vegetables in the time frame? (Round your answer to two decimal places.)

Respuesta :

Answer: 0.52

Explanation:

Opportunity cost is the benefit that is obtained from a good or from an activity  is foregone by choosing some other alternative.

It was given that a family spends its entire budget either on vegetables or frozen pizzas.

So, the opportunity cost of a can of vegetables [tex]= \frac{45}{85}[/tex]

                                                                                      = 0.5294 units of frozen pizzas

This means that opportunity cost of spending on a can of vegetables is 0.52 units of frozen pizzas.

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