Calculate Ramon and Sammy's opportunity cost of each task. Please round each answer to the nearest tenth.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Ramon and Sammy are working on a group homework assignment. The homework consists of a set of essay questions and a set of questions on graphing models. Ramon can finish an essay question in about 15 minutes and a graphing question in about 30 minutes. Sammy can finish an essay question in about 20 minutes and a graphing question in about 35 minutes. Assume that Ramon and Sammy produce the same quality answers.

Calculate Ramon and Sammy's opportunity cost of each task. Please round each answer to the nearest tenth.

a. Ramon’s opportunity cost of completing an essay question:
 
_____graphing questions
b. Ramon’s opportunity cost of completing a graphing question:
 
_________essay questions
c. Sammy’s opportunity cost of completing an essay question:
 
_________graphing questions
d. Sammy’s opportunity cost of completing a graphing question:
 
_________essay questions
e. If the two want to specialize in working on their homework, who should do the essay questions and who should do the graphing questions?
Ramon should do the essay questions, and Sammy should do the graphing questions.
Sammy should do all of the questions.
Ramon should do the graphing questions, and Sammy should do the essay questions.
Ramon should do all of the questions.
Expert Solution
Step 1

Ramon can finish an essay question in about 15 minutes and graphing question in about 30 minutes

 

Sammy can finish an essay question in about 20 minutes and graphing question in about 35 minutes

 

a) Ramon's opportunity cost of completing an essay question is 0.5 graphing question

 

b) Ramon's opportunity cost of completing an grpahing question is 2 essay question

 

c) Sammy's opportunity cost of completing an essay question is 0.57 graphing question

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