Asked by Derek Lehan on May 20, 2024
Verified
Lucy can bake 200 cookies in an hour or watch her favorite tv show.If she chooses to watch her show,the cookies are an example of
A) Unlimited resources
B) Limited wants
C) Opportunity cost
D) None of the above
Opportunity Cost
The foregone benefit that would have been derived from an option not chosen.
Unlimited Resources
A hypothetical scenario in which there is an infinite supply of resources, making scarcity and allocation concerns non-existent.
Favorite Tv Show
The television program a person enjoys the most or has a strong preference for over others.
- Spot and describe the idea of opportunity cost in the framework of decision-making.
Verified Answer
DJ
Dominque JacksonMay 27, 2024
Final Answer :
C
Explanation :
If Lucy chooses to watch her favorite TV show, she incurs an opportunity cost of not being able to bake 200 cookies in that hour. Therefore, the cookies are an example of opportunity cost. The best choice depends on Lucy's preferences and priorities. If she values her free time and leisure activities more than baking cookies, then watching her favorite TV show would be the best choice. On the other hand, if she values productivity and wants to bake cookies for some purpose, then baking cookies would be the best choice for her.
Learning Objectives
- Spot and describe the idea of opportunity cost in the framework of decision-making.