Subjects economics

Opportunity Costs Ac8D5C

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1. The problem asks to determine the type of opportunity costs Dina faces in producing sliders and hot wings based on the production choices table. 2. Opportunity cost is the cost of forgoing the next best alternative when making a decision. In production, it is how much of one good must be given up to produce more of another good. 3. We analyze the opportunity cost of sliders in terms of hot wings by calculating how many hot wings are given up to produce fewer sliders as we move from one choice to the next. 4. Calculate opportunity cost between choices: - From A to B: Sliders decrease by $80 - 60 = 20$, hot wings increase by $25 - 0 = 25$, so opportunity cost of 20 sliders is 25 hot wings, or $\frac{25}{20} = 1.25$ hot wings per slider. - From B to C: Sliders decrease by $60 - 40 = 20$, hot wings increase by $50 - 25 = 25$, opportunity cost is again $\frac{25}{20} = 1.25$ hot wings per slider. - From C to D: Sliders decrease by $40 - 20 = 20$, hot wings increase by $75 - 50 = 25$, opportunity cost is $\frac{25}{20} = 1.25$ hot wings per slider. - From D to E: Sliders decrease by $20 - 0 = 20$, hot wings increase by $100 - 75 = 25$, opportunity cost is $\frac{25}{20} = 1.25$ hot wings per slider. 5. Since the opportunity cost remains constant at 1.25 hot wings per slider across all intervals, Dina faces constant opportunity costs. 6. Therefore, the correct answer is B. constant opportunity costs. Final answer: Dina faces **constant** opportunity costs in the production of sliders and hot wings.