ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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12. You and your roommate start a delivery business where
you deliver restaurant meals and bags of groceries. You can
deliver 20 meals or 25 bags of groceries each week. Your
roommate can deliver 30 meals or 10 bags of groceries
each day. What is your opportunity cost of delivering
groceries?
a. 0.80 restaurant meals.
b. 0.80 bags of groceries.
c. 1.25 restaurant meals.
d. 1.25 bags of groceries.
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Transcribed Image Text:12. You and your roommate start a delivery business where you deliver restaurant meals and bags of groceries. You can deliver 20 meals or 25 bags of groceries each week. Your roommate can deliver 30 meals or 10 bags of groceries each day. What is your opportunity cost of delivering groceries? a. 0.80 restaurant meals. b. 0.80 bags of groceries. c. 1.25 restaurant meals. d. 1.25 bags of groceries.
Expert Solution
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Step 1: Define opportunity cost

Opportunity cost is the cost of the next best alternative or an option chosen over the other. 

Opportunity cost = sacrifice/gain 

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