httpswwwnath xhomewor 167936621questionid2flushedtakedd48749

https://www.nath x?homewor. 167936621&questionid-2;&flushed-take;&dd-4874941; ECON 2301.320 Spring 2018 Christopher Jank Homework: Practice Lesson 3-PPF Score: 0 of 1 pt Checkpoint 4 Test B2 Emily owns an ice cream parlor. In an hour she can produce 40 milkshakes or 40 ice cream sundaes Ben also owns an ice cream parlor. In an hour he can produce 20 milkshakes or 10 ice cream sundaes Emily\'s opportunity cost of producing 1 milkshake is Ben\'s opportunity cost of producing 1 milkshake is | 100110 (9 complete) A. 0.5 ice cream sundae, 1 ice cream sundae O B. 1 ice cream sundae, 0.5 ice cream sundae O C. 2 ice cream sundaes; 1 ice cream sundae D. 1 ice cream sundae, 2 ice cream sundaes Click to select your answer and then click Check Answer Clear All remaining Type here to search Oi 28

Solution

The correct option is (D). 1 ICE CREAM SUNDAE; 2 ICE CREAM SUNDAES

Opportunity cost is the cost of the next best alternative which can be chosen as a course of action.

Emily can produce 40 milkshakes or 40 ice cream sundaes.

Therefore the cost of producing 40 milkshakes is 40 ice cream sundaes and therefore producing 1 milkshake is :

= 40 / 40 = 1 ice cream sundaes.

Ben can produce 20 milkshakes or 10 ice cream sundaes.

And therefore producing 1 milkshakes is

= 20 / 10 = 2 ice cream sundaes.