Question

1. Alejandro and Roger are working on a group project for class that requires writing a paper and designing charts to explain the information contained in the paper. Alejandro can write three pages of the paper in the same time it takes him to create two charts. Roger can write two pages of the paper in the same time he can produce a single chart. What is the opportunity cost for each to produce a single page of the essay

Answer 1

Answer:

Alejandro´s opportunity cost is 2/3 of a chart.

Roger´s opportunity cost is 1/2 of a chart.

Explanation:

The cost of opportunity represent the benefits that you misses out on when choosing one alternative over another.  

In this case ,  we can say that Alejandro and Roger can produce 2 product.  And if they produce one ,  they loose the possibility of producing the other.

We can Illustrate this situation with a production possibility frontiers graph and  if we increase  the quantity produced of one good,  will  decrease the other, because the limited resources.  

Alejandro produce 3 three pages of the paper in the same time it takes him to create two charts. We use cross multiplication to get  how many charts Alejandro produce at the same time he produce a single page

1___x

3___2 so x= 1x2/3

So ,  in the time he produce a single page of the essay,  he could produce 2/3 of a chart. This is the cost opportunity.

Roger can write two pages of the paper in the same time he can produce a single chart. So,  in the time he produce a single page of the essay he could make half of a chart.  

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