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What is the opportunity cost of producing one more cake as we move from combination B to combination C? (round to 2 decimal places if needed)

B. # of Cookies 34 # Of Cakes 4
C. # Of Cookies. 28 # Of Cakes 7

User Fawyd
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1 Answer

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Final answer:

The opportunity cost of producing one more cake when moving from combination B to C is 2 cookies per cake, as producing 3 more cakes results in 6 less cookies.

Step-by-step explanation:

The opportunity cost of producing one more cake when moving from combination B to combination C is calculated by examining the trade-off in cookie production. In combination B, there are 34 cookies and 4 cakes, and in combination C, there are 28 cookies and 7 cakes.

The change in production involves an increase of 3 cakes (from 4 to 7) and a decrease of 6 cookies (from 34 to 28). To determine the opportunity cost of producing one more cake, we divide the decrease in cookies (6 cookies) by the increase in cakes (3 cakes).

Therefore, the opportunity cost per additional cake produced is 2 cookies (6 cookies divided by 3 cakes). This indicates that for every additional cake produced, 2 cookies are foregone, representing the trade-off in production between cakes and cookies in this scenario.

User Benoit Catherinet
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