Question
Pat takes 4 hours to brew 5 L of beer and 2 hours to make a pizza. Kris takes 6 hours to brew 5 L of beer and 4 hours to make a pizza.
What is Pat and Kris's opportunity cost of making a pizza?
Think the problem through, then take a shot. The opportunity cost of making pizza is not making beer. Hint: how much beer would Pat NOT make if Pat made 2 pizzas?
Pat would not make 2.5 L of beer but i am confused about Kris.
Use the same math and procedure. For Pat, I believe you did the following calculations. To make 2 pizzas she would need 4 hours, which equals 5 L of beer -- So, one pizza would equal 2.5L of beer.
For Kris to make 1 pizza would take 4 hours or (4/6)*5 L of beer = 3.3333 L of beer. Ergo, Kris's opportunity cost for making pizza is higher than Pats. (Which will mean the Kris's opportunity cost for making beer is Lower than Pat's)
What is Pat and Kris's opportunity cost of making a pizza?
Think the problem through, then take a shot. The opportunity cost of making pizza is not making beer. Hint: how much beer would Pat NOT make if Pat made 2 pizzas?
Pat would not make 2.5 L of beer but i am confused about Kris.
Use the same math and procedure. For Pat, I believe you did the following calculations. To make 2 pizzas she would need 4 hours, which equals 5 L of beer -- So, one pizza would equal 2.5L of beer.
For Kris to make 1 pizza would take 4 hours or (4/6)*5 L of beer = 3.3333 L of beer. Ergo, Kris's opportunity cost for making pizza is higher than Pats. (Which will mean the Kris's opportunity cost for making beer is Lower than Pat's)