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What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or words. The opportunity cost is in fish.

What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or words. The opportunity cost is in fish.

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter3: The Fundamental Economic Problem: Scarcity And Choice
Section: Chapter Questions
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Refer to Table 1. What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or words. The opportunity cost is in fish.
Transcribed Image Text:Refer to Table 1. What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or words. The opportunity cost is in fish.
Table 1 Berries (Ibs.) Fish Rob 25 60 Bill 40 80 Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where they had to find and make their own food. Rob and Bill spent one day each fishing and picking berries. The tables lists the pounds of output Rob and Bill produced.
Transcribed Image Text:Table 1 Berries (Ibs.) Fish Rob 25 60 Bill 40 80 Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where they had to find and make their own food. Rob and Bill spent one day each fishing and picking berries. The tables lists the pounds of output Rob and Bill produced.
Expert Solution
Step 1- Opportunity cost

Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due to the choice of an alternative good over it. Suppose we choose tea over coffee then here we are loosing the ecstasy of drinking coffee over consumption of tea. It is generally a trade off which implies an option chosen over another option.

Oppertunity cost=goods sacrificedgoods gained

It the ratio between what one sacrifices and what one gains. The lower the opportunity cost the better it is.

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