Question

In one day Mahar can build 60 picture frames or 30 toys; Antoine can build 15...

In one day Mahar can build 60 picture frames or 30 toys; Antoine can build 15 picture frames or 5 toys. what is mahar and atoine's opportunity cost?

Homework Answers

Answer #1

Opportunity cost is the cost or loss which is suffered by consumer on choosing a better option over other. It is the cost of next best alternative forgone.

In case of Mahar, he will choose production of 60 picture frames over 30 toys as it gives him more units as his final produce. Since, cost of goods is not provided, he will have to decide on the basis of production of units. So, in this case, opportunity cost will be the production of toys, i.e. 30 toys.

Similarly in case of Antoine, picture frames will be preferred over toys as it also provides more production. So, opportunity cost of Antoine will be production of toys, i.e. 5 toys.

Opportunity cost of Mahar 30 toys
Opportunity cost of Antoine 5 toys
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear...
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $15 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March...
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear...
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March...
30% of people between 60-70 years old will have at least one visit to a health...
30% of people between 60-70 years old will have at least one visit to a health provider. This proportion will be 5% for people between 10-20 years old, and it will be 15% for kids between 5-10 years old. If we randomly select 75 of people in the age range of 60-70, then answer the following questions: What is the probability that between 30 and 60 people, inclusive, will visit a health provider?
April can produce 15 dozen apple pies or 1 dozen croissants in one day. Arthur can...
April can produce 15 dozen apple pies or 1 dozen croissants in one day. Arthur can produce 2 dozen apple pies or 10 dozen croissants in one day. a. Draw the production possibilities frontiers for April and Arthur b.What pattern of specialization and trade will benefit both April and Arthur? Why?
April can produce 15 dozen apple pies or 1 dozen croissants in one day. Arthur can...
April can produce 15 dozen apple pies or 1 dozen croissants in one day. Arthur can produce 2 dozen apple pies or 10 dozen croissants in one day. a. Draw the production possibilities frontiers for April and Arthur b.What pattern of specialization and trade will benefit both April and Arthur? Why?
[The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that...
[The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected...
30% of people between 60-70 years old will have at least one visit to a health...
30% of people between 60-70 years old will have at least one visit to a health provider. This proportion will be 5% for people between 10-20 years old, and it will be 15% for kids between 5-10 years old. If we randomly select 75 of people in the age range of 60-70, then answer the following questions: 1 What is the expected number of those who will visit a health provider? 2 What is the probability that at least 15...
A project to build a new taxiway at Culpepper Airport is 5 days behind at day...
A project to build a new taxiway at Culpepper Airport is 5 days behind at day 65. It had a planned cost of $735,000 for this point in time, but the actual cost is only $550,000. Estimate the variances and what do they say about the health of the project? Re-estimate if the actual cost to date had been $750,000.
A dealer forecasts that the discount rate on a 60-day bill will be 5.10%. The current...
A dealer forecasts that the discount rate on a 60-day bill will be 5.10%. The current discount rate on a 90-day bill is 5.30%. What is the highest 30-day repo rate the dealer can afford to pay and still expect to break even? Explain your reasoning (and/or the setup to solve this question).
Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It...
Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It is anticipated that the product mix will be 40% Speedie and 60% Spunkie. One unit of Speedie will be sold for $100, with variable cost equals $40. For a unit of Spunkie, the selling price will be $120 and the variable cost is $70. The fixed cost for producing the two products is $108 000. a. What is the break-even point in units for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT