Question

Alina received $60 in the mail from her grandparents to buy whatever she wanted. She decided she could spend all of it on 4 t-shirts. On the other hand, she could also choose to spend the whole amount on 30 of her favorite protein bars. The opportunity cost of a t-shirt is _______, while the opportunity cost of a protein bar is _______.a. 30 bars, 4 shirtsb. 2/15 bars, 7.5 shirtsc. 7.5 bars, 2/15 shirtsd. 7.5 shirts, 2/15 bars

Answer 1

Answer:

(c) 7.5 bars, 2/15 shirts

Explanation:

Opportunity cost is simply defined as the next best alternative.

Opportunity cost also refers to the loss of foregone gain which could have resulted had a non chosen option been selected over the chosen option. For instance, the opportunity cost of storing money at home is the average market rate of interest which would've been earned had the same money been invested.

In the given question, the opportunity cost of a t shirt would be :

= $\frac{30\ Protein\ Bars}{4\ T\ Shirts}$

= 7.5 protein bars

Similarly, the opportunity cost for a protein bar would be:

= $\frac{4\ T\ Shirts}{30\ Protein\ Bars}$

= $\frac{2}{15} \ T\ Shirts$

Thus, the correct option is (c) 7.5 bars, 2/15 shirts