Vince have 6 Ice cream cups n 11 t shirt what is the opportu
Vince have 6 Ice cream cups n 11 t shirt what is the opportunity cost of him producing one t shirt ?
by the way I have tried 1.83. the answer not correct.
Solution
Total number of ice-creams = 6
Total number of T-shirts = 11
The opportunity cost of producing one more unit of a good is the quantity of next best alternative good that has to be sacrificed.
As vince has two goods - ice-cream cups and T-shirt, Production of one more t-shirt implies sacrifice of some quantity of ice-cream cups.
Calculate opportunity cost of producing 1 T-shirt -
Opportunity cost = Total number of ice-cream cups/Total number of T-shirts = 6/11 = 0.54
The opportunity cost of producing 1 t-shirt is 0.54 ice-cream cups.
