Question
Utilize the following information to answer the following question:
MUBURGERPBURGER> MUHOTDOGPHOTDOGMUBURGERPBURGER>MUHOTDOGPHOTDOG
Question:
Which good has the lower opportunity cost if consumed? Why does it have the lowest opportunity cost?
MUBURGERPBURGER> MUHOTDOGPHOTDOGMUBURGERPBURGER>MUHOTDOGPHOTDOG
Question:
Which good has the lower opportunity cost if consumed? Why does it have the lowest opportunity cost?
A Consuming a burger has the lowest opportunity cost because if you consume a burger you are foregoing the consumption of a hot dog, which has a lower marginal utility per dollar compared to a burger.
B Consuming a burger has the lowest opportunity cost because if you consume a burger you are foregoing the consumption of a hot dog, which has a higher marginal utility per dollar compared to a burger.
C Consuming a hot dog has the lowest opportunity cost because if you consume a hot dog you are foregoing the consumption of a burger, which has a higher marginal utility per dollar compared to a hot dog.
D Consuming a burger has the lowest opportunity cost because you are foregoing the least in terms of dollars spent on consumption.
This question is taken from Econ 101 – Microeconomics » Summer 2021 » iVAT Chapter 19
