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Yuri [45]
4 years ago
10

If a family spends its entire budget in a given time frame, the family can afford either 15 movie nights or 8 restaurant meals.

Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one movie night?
Business
1 answer:
enot [183]4 years ago
3 0

Answer:

The correct answer is 0.533 restaurant meals.

Explanation:

The two goods consumed by the family mentioned here are movie nights and restaurant meals.

The family can afford either 15 movie nights or 8 restaurant meals out of their total budget.

The opportunity cost of 15 movie nights = 8 restaurant meals

The opportunity cost of 1 movie night

= \frac{8}{15}

= 0.533 restaurant meals

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