Question

If a family spends its entire budget in a given time frame, the family can afford either 15 movie nights or 8 restaurant meals. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one movie night?

Answer 1

The correct answer is 0.533 restaurant meals.

Step-by-step explanation:

The two goods consumed by the family mentioned here are movie nights and restaurant meals.

The family can afford either 15 movie nights or 8 restaurant meals out of their total budget.

The opportunity cost of 15 movie nights = 8 restaurant meals

The opportunity cost of 1 movie night

=
`(8)/(15)`

= 0.533 restaurant meals