Question

Esther and Ebenezer produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Ebenezer can produce three hamburgers per hour or one hot dog per hour. Based on the scenario, Ebenezer’s opportunity cost of one hot dog is ________ hamburgers.

Answer 1

Answer:

The correct answer is Three.

Explanation:

Opportunity cost is defined as what it costs us to decide on a decision and what it costs us to carry it out. In this case Esther produces 6 hamburgers per hour and Ebenezer 3; if it were decided to choose the latter, they would stop producing 3 hamburgers since Esther produces double. This would be the opportunity cost.