Answer to Question #146772 in Microeconomics for hadiqa khan

Question

In past 50 years the frozen food industry in U.S has grown from $1billion to $27 billion. Discuss the role of opportunity cost in our lives with regards to this huge growth in the frozen food market in the U.S

Answer 1

The growth of the frozen food industry in the last 50 years is a good example of the role of opportunity costs in our lives. One of the most significant social changes in the U.S. economy in this period has been the increased participation of women in the labor force. Producing a meal takes two basic components: time resources and food resources. When both husbands and wives work, the opportunity cost of time for making food grows. This indicates, that making a home-cooked meal became more expensive in the last 50 years. A natural result is to shift people toward labor-saving ways to make meals. Frozen foods were a solution to the problem of increased opportunity costs.