Question

On day 2 , Raj makes 70 more bagels than on day 1. What is the opportunity cost of producing 70 more bagels

Answer 1

On Day 2, Raj makes 70 more bagels than on Day 1. What is the opportunity cost of producing 70 more bagels? 100 doughnuts

On Day 3, Raj makes 50 more croissants than on Day 2. What is the opportunity cost of producing fifty more croissants? 70 bagels

Answer 2

The opportunity cost is the alternative that is rejected when making an economic decision. If Raj increased his production in the second day, it can be due to two reasons: he worked longer or he worked harder. In both cases he has refused to an alternative option.

• If he worked more time, for example two hours, the opportunity cost would be the two hours that he could have dedicated to leisure activities
• If he worked harder, the opportunity cost would be rejecting to be less tired after work.