If a family spends its entire budget in a given time frame, the family can afford either 120 sodas or 10 lbs of meat. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one extra pound of meat in the time frame?

Question

Belen Arnold

Business

14 February, 05:05

If a family spends its entire budget in a given time frame, the family can afford either 120 sodas or 10 lbs of meat. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one extra pound of meat in the time frame?

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Answers (1)

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Noe Vance · Answer 1

The opportunity cost of one extra pound of meat in the time frame is 12 sodas.

Explanation:

In a given time frame, a family can either spend on 120 sodas or 10 lbs of meat. So, we have the opportunity cost of 10 lbs of meat is equal to 120 sodas.

As a result, the opportunity cost of 1 lbs of meat is calculated as: 120/10 = 12 sodas.

So, the right answer is : "Opportunity cost of one extra pound of meat in the time frame is 12 sodas."