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5 March, 23:44

On a short road trip, if Mary spends her entire budget on gas and diner meals, Mary can afford either 35 gallons of gas or 7 diner meals. What is the opportunity cost of one diner meal?

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  1. 5 March, 23:57
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    The cost of opportunity of one diner meal is 5 gallons.

    Explanation:

    The cost of opportunity is the alternative that you sacrifice when you choose an option.

    It represents the benefits that you miss out on when choosing one alternative over another.

    In this case, the cost of opportunity of one diner meal is the quantity of gallons that you sacrifice.

    7 diners = 35 gallons

    1 diner = 35*1/7 = 5 gallons

    The cost of opportunity of one diner meal is 5 gallons.
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Home » Business » On a short road trip, if Mary spends her entire budget on gas and diner meals, Mary can afford either 35 gallons of gas or 7 diner meals. What is the opportunity cost of one diner meal?
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