Hilary and Maria are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Hilary takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Maria takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza. Megan's opportunity cost of making a pizza is:
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons
of root beer, and Susan's opportunity cost of making a pizza is:
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons

Answer and Explanation:

Opportunity cost is the net benefit arise from the loss suffered from the selective option.

In the given situation, the Megan's opportunity cost of making a pizza is

= 3 hours to make a pizza ÷ 5 hours to brew a gallon of root beer

= 3 ÷ 5 gallons

This is the answer but the same is not provided in the given options

And, the Susan opportunity cost of making a pizza is

= 4 hours to make the pizza ÷ 8 hours  to brew a gallon of root beer

= 4 ÷ 8 gallons

= 1 ÷ 2 gallons

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