Asked by
Binod Aryal
on Oct 27, 2024
Verified
Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq spends all of his income,the opportunity cost of one milkshake is equal to _____ tacos.
A) 2
B) 10
C) 5
D) 1/5
Opportunity Cost
The loss incurred from discarding the next top option available when a choice is made.
Milkshake
A sweet, cold beverage made from milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.
Tacos
A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling.
- Calculate opportunity costs and understand their role in consumer decision-making.
Verified Answer
EE
Learning Objectives
- Calculate opportunity costs and understand their role in consumer decision-making.