Question

If a family spends its entire budget in a given time frame, the family can afford either 85 cans of vegetables or 45 frozen pizzas. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of vegetables in the time frame? (Round your answer to two decimal places.)

Answer 1

The opportunity cost of one can of vegetables is 0.53 frozen pizzas when choosing between purchasing 85 cans of vegetables or 45 frozen pizzas with the same budget.

Step-by-step explanation:

To determine the opportunity cost of a can of vegetables in terms of frozen pizzas, we need to understand how many pizzas could be purchased instead of buying one can of vegetables. According to the question, the family could afford either 85 cans of vegetables or 45 frozen pizzas. This implies a trade-off between the two goods.

To find the opportunity cost of one can of vegetables, we divide the total number of pizzas by the total number of cans. The calculation is 45 frozen pizzas / 85 cans of vegetables, which equals approximately 0.529411765. So, rounded to two decimal places, the opportunity cost of one can of vegetables is 0.53 frozen pizzas.

Answer 2

Answer: 0.52

Step-by-step explanation:

Opportunity cost is the benefit that is obtained from a good or from an activity is foregone by choosing some other alternative.

It was given that a family spends its entire budget either on vegetables or frozen pizzas.

So, the opportunity cost of a can of vegetables
`= (45)/(85)`

= 0.5294 units of frozen pizzas

This means that opportunity cost of spending on a can of vegetables is 0.52 units of frozen pizzas.