Question

In one hour, Sally can complete 4 reports or she can write 8 computer programs. Calculate the opportunity cost for this scenario

Answer 1

The opportunity cost for Sally is 2 computer programs per report if she chooses to write reports or 0.5 report per computer program if she chooses to write computer programs.

Step-by-step explanation:

The concept of opportunity cost refers to the value of the next best alternative that is foregone when making a choice. In the scenario provided, Sally has the capacity to complete 4 reports or write 8 computer programs in one hour. The opportunity cost of choosing to complete reports over computer programs is the number of computer programs she could have written instead. Similarly, the opportunity cost of choosing to write computer programs over reports is the number of reports she could have completed instead.

To calculate Sally's opportunity cost, we consider the ratio of reports to computer programs. If she can write 8 computer programs in the time it takes to write 4 reports, the opportunity cost of one report is 8/4, which equals 2 computer programs. On the other hand, if she chooses to write computer programs, the opportunity cost of one computer program is 4/8, which equals 0.5 report.

Answer 2

The opportunity cost for this scenario can be calculated by comparing the two options available to Sally. In one hour, she can either complete 4 reports or write 8 computer programs. The opportunity cost is the value of the next best alternative that Sally gives up by choosing one option over the other.

Step-by-step explanation:

The opportunity cost for this scenario can be calculated by comparing the two options available to Sally. In one hour, she can either complete 4 reports or write 8 computer programs. The opportunity cost is the value of the next best alternative that Sally gives up by choosing one option over the other. In this case, if Sally chooses to complete 4 reports, the opportunity cost would be the value of writing 8 computer programs. On the other hand, if Sally chooses to write 8 computer programs, the opportunity cost would be the value of completing 4 reports.

To calculate the opportunity cost, we need to determine the value of each option. Let's assume that the value of completing 4 reports is $40, and the value of writing 8 computer programs is $60. If Sally chooses to complete 4 reports, the opportunity cost would be $60 (the value of writing 8 computer programs). On the other hand, if Sally chooses to write 8 computer programs, the opportunity cost would be $40 (the value of completing 4 reports).