Question

Maria can read 15 pages of economics in an hour. She can also read 40 pages of sociology in an hour. She spends 8 hours per day studying. a. Draw Marias production possibilities frontier for reading economics and sociology. b. What is Marias opportunity cost of reading 80 pages of sociology? 

Answer 1

The opportunity cost of studying 80 pages of sociology means reading sociology for 2 hours a day. This means 6 hours remaining for studying Economics and this translates to 90 pages. Therefore the opportunity cost equals 90 pages of Economics.