Answer to Question #118560 in Microeconomics for Simu

Question

A small restaurant can produce the following “take-away” meals in any one day. The restaurant plans to make 2 lasagne and 12 pizzas today. [2]
Option Lasagne Pizzas
1 0 15
2 1 14
3 2 12
4 3 9
5 4 5
6 5 0
Orders for two more lasagne come in. What is the opportunity cost of producing the additional two lasagne?

Answer 1

To produce 2 addicitional lasange we have to give up (12-5) pizzas, so opportunity cost of 2 lasagne is 7 pizzas.