Question
Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is 240 000$. ATVs cost 6000$ each and snowmobiles cost 12000$ each.
. What is the opportunity cost of one ATV?
The opportunity cost of one ATV is _______ automobiles
. What is the opportunity cost of one ATV?
The opportunity cost of one ATV is _______ automobiles
Answers
Answered by
GPT 3.5
To determine the opportunity cost of one ATV, we need to compare it with the cost of an alternative option. In this case, the alternative option is a snowmobile, which costs $12,000 each.
Opportunity Cost of One ATV = Cost of Alternative Option / Quantity of Alternative Option
Opportunity Cost of One ATV = $12,000 / 1 = $12,000
Therefore, the opportunity cost of one ATV is $12,000.
Opportunity Cost of One ATV = Cost of Alternative Option / Quantity of Alternative Option
Opportunity Cost of One ATV = $12,000 / 1 = $12,000
Therefore, the opportunity cost of one ATV is $12,000.