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Julie Sanchez
on Oct 27, 2024

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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.Put tacos on the horizontal axis and milkshakes on the vertical axis.If Faruq spends all of his income,the opportunity cost of one taco equals _____ milkshakes.

A) 2
B) 10
C) 5
D) 1/5

Opportunity Cost

The cost of missing out on the second-best choice when making a decision.

Taco

A traditional Mexican dish consisting of a folded or rolled tortilla filled with various mixtures, such as meat, cheese, and vegetables.

Milkshakes

A sweet, cold beverage made from milk, ice cream, and often flavorings or sweeteners like butterscotch, caramel sauce, or chocolate syrup.

  • Compute opportunity costs and comprehend their significance in the decision-making process of consumers.
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EJ
Eiker JacomeOct 31, 2024
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