Hilary and Edison need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. Hilary is pretty good with a post auger; she can dig the holes in 1 hour. Edison is somewhat slow; it takes him 9 hours to dig the holes. Hilary earns $200 per hour as a personal trainer, while Edison earns $25 per hour as a clerk. Keeping in mind that either Hilary or Edison must take time off from work to dig the holes, who has the lower opportunity cost of completing the task?

a) Hilary and Edison face identical opportunity costs

b) Hilary

c) Edison

Question

Business

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21 November, 01:11

Hilary and Edison need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. Hilary is pretty good with a post auger; she can dig the holes in 1 hour. Edison is somewhat slow; it takes him 9 hours to dig the holes. Hilary earns $200 per hour as a personal trainer, while Edison earns $25 per hour as a clerk. Keeping in mind that either Hilary or Edison must take time off from work to dig the holes, who has the lower opportunity cost of completing the task?

a) Hilary and Edison face identical opportunity costs

b) Hilary

c) Edison

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Answers (1)

Know the Answer?

Lola Duncan · Answer 1

B) Hilary.

Explanation:

Opportunity Cost: The loss incurred by choosing between alternatives.

Hilary already earns $200, if she decides not to dig holes she would still have her job. While for Edison he is already so slow in digging holes, moreover if he decides to dig holes than doing his job he will lose $25.