Becky and Alex need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Becky is pretty good with a pair of shears; she can shear the llamas in 1 hour. Alex is somewhat slow; it takes him 6 hours to shear the llamas. Becky earns $120 per hour as a psychiatrist, while Alex earns $15 per hour as a cobbler. Keeping in mind that either Becky or Alex must take time off from work to shear the llamas, who has the lowest opportunity cost of completing the task? a. Alex b. Becky and Alex face equal opportunity costs c. Becky
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Therefore, her opportunity cost is $120. ** Show more…
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