Question

A FedEx store has 5 employees. Each employee can either make 5,000 color copies or 10,000 black-n-white copies of documents on a daily basis.

Number of employees	5
Productivity of color copies	1,000
Productivity of B/W copies	2,000

What is the opportunity cost of each activity?

  

	Opportunity cost
color copy	B/W copies per color copy
B/W copy	color copies per B/W copy

In a day of time, can the store complete the following task? (enter 1 for yes, enter 2 for no)

Task	1. Yes; 2. No
5,000 color copies
10,000 B/W copies
2.500 color and 5,000 B/W
2,000 color and 7,000 B/W
3,500 color and 4,000 B/W
1,000 color and 7,000 B/W
3,000 color and 4,000 B/W

Answer 1

Opportunity cost is the value of the next best alternative of a factor.for example if we use labour for apple production that Worth 200$ and also we could use labour for banana production that Worth 150$ .,so opportunity cost of using labour in apple production is 150$.

Color copy opportunity cost=10,000/5000=2

B/w copy opportunity cost=5000/10,000=0.5

5000 color copy=1( by using 1 employee)

10,000 b/w copy =1( by using 1 employees)

2500 color and 5000b/w copy=1( by using 0.5 employees for color and 0.5 for b/w)

2000color and 7000 b/w=1( by using 0.4 employees for color and 0.7 employees for b/w)

3500 color and 4000 b/w=1( by using 0.8 employees for color and 0.4 employees for b/w)

1000 color and 7000 b/w=1( by using 0.2 employees for color and 0.7 employees for b/w)

3000 color and 4000 b/w=1( by using 0.6 employees for color and 0.4 employees for b/w)