Question

If a family spends its entire budget in a given time frame, the family can afford either 14 outings or 24 household items. Assuming the family spends its entire budget on just these two things, what is the opportunity cost of one extra outing in the time frame? (Round your answer to two decimal places.)

Answer 1

Answer:

1.71 household items

Explanation:

In this question, we learn that the family will only consume two goods: outings and household items. The family can either have access to 14 outings or 24 household items. This means that:

opportunity cost of 14 outings = opportunity cost of 24 household items

Therefore,

opportunity cost of 1 outing = 1.71 household items