Refer to Table 1.What is Bill's opportunity cost for a pound of berries?Enter a value without commas, symbols or words. The opportunity cost is in fish. Table 1Berries (Ibs.) FishRob2560Bill4080Rob Crusoe and Bill Friday spent their week-long vacation on a desert island wherethey had to find and make their own food. Rob and Bill spent one day each fishingand picking berries. The tables lists the pounds of output Rob and Bill produced.

Answered: What is Bill's opportunity cost for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to Table 1.
What is Bill's opportunity cost for a pound of berries?
Enter a value without commas, symbols or words. The opportunity cost is in fish.

Table 1
Berries (Ibs.) Fish
Rob
25
60
Bill
40
80
Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where
they had to find and make their own food. Rob and Bill spent one day each fishing
and picking berries. The tables lists the pounds of output Rob and Bill produced.

Expert Solution

Step 1- Opportunity cost

Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due to the choice of an alternative good over it. Suppose we choose tea over coffee then here we are loosing the ecstasy of drinking coffee over consumption of tea. It is generally a trade off which implies an option chosen over another option.

$O p p e r t u n i t y \cos t = \frac{g o o d s s a c r i f i c e d}{g o o d s g a i n e d}$

It the ratio between what one sacrifices and what one gains. The lower the opportunity cost the better it is.

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