Scenario: A machine that can be used to print both notebooks and magazines is available for use for a fixed period of time. If it is used only to print notebooks, 30 notebooks can be printed. If it is used only to print magazines, 15 magazines can be printed.
-Refer to the scenario above.What is the opportunity cost of printing 1 magazine?

Question

Quizplus · Accepted Answer

The opportunity cost of printing 1 magazine is the amount of the other good that must be forgone. Since 30 notebooks can be printed in the same time it takes to print 15 magazines, printing 1 magazine means forgoing 2 notebooks (30 notebooks / 15 magazines = 2 notebooks per magazine).

Scenario: a Machine That Can Be Used to Print Both