Question

Two friends, rachel and joey, enjoy baking bread and making apple pies. rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie. what is joey's opportunity cost of baking 1 loaf of bread

Answer 1

Joey's opportunity cost of baking 1 loaf of bread is 1 pie or 4 hours of time due to the fact that it takes Joey the same amount of time to bake 1 loaf of bread as it does to bake 1 pie.