Paulie's opportunity cost of producing a cup of ice cream is 4 T-shirts while Vinny's opportunity cost (C) of producing a t-shirt is 0.53
<h3>How to calculate the opportunity cost</h3>The table entries are given as:
Ice Cream (cups) T-shirts (quantity)
Paulie 5.00 20.00
Vinny 8.00 15.00
Paulie's opportunity cost of producing a cup of ice cream is calculated by dividing the number of T-shirts by the cups of ice cream.
So, we have:
Similarly, Vinny's opportunity cost (C) of producing a t-shirt is calculated by dividing the cups of ice cream by the number of T-shirts
So, we have:
Hence, Vinny's opportunity cost (C) of producing a t-shirt is 0.53
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