The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?

Question

Business

Max Schaefer

2 October, 10:26

The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?

+1

Answers (1)

Know the Answer?

Janiya · Answer 1

0.6 gallon of milk

Explanation:

Given that,

Price of selling fresh eggs = $1.50 per dozen

Price of selling fresh milk = $2.50 per gallon

Opportunity cost refers to the benefit that is forgone by choosing some other alternative.

Here, the opportunity cost of buying a dozen of eggs is calculated as follows:

= Price of selling fresh eggs : Price of selling fresh milk

= $1.50 per dozen : $2.50 per gallon

= 0.6 gallon of milk