Question

This schedule shows the opportunity cost of producing doughnuts, bagels, and croissants. Refer to the schedule and use the drop-down menu to answer each question. On Day 2, Raj makes 70 more bagels than on Day 1. What is the opportunity cost of producing 70 more bagels? On Day 3, Raj makes 50 more croissants than on Day 2. What is the opportunity cost of producing fifty more croissants?

Answer 1

1. 100 doughnuts

2. 70 bagels

Step-by-step explanation:

Answer 2

The correct answers are the following.

The opportunity cost of producing 70 more bagels is 100.

The opportunity cost of producing fifty more croissants is 70.

The opportunity cost is the factor or element that you are losing when you make a decision when you choose something else. IN business, when you decide over "A," there is something that you lose by having not decided for "B." That is the opportunity cost. So every time you are about to make a business decision or operations decision, remember there is a trade-off included.