I'm very confused, please help!
Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a bathing suit for $15.00, a sun hat for $8.00, magazines for $8.00, and a beach towel for $7.00. When she gets to the register, she realizes she only has $20.00 in her pocket.
If Maria decides to purchase the sun hat and towel, what is the opportunity cost of her purchase? Select all that apply. There are two answers.
the sun hat
the towel
the magazines
the bathing suit
@Ms. Sue, is the answer C and D?
Yes, C and D.
Study this.
http://www.investopedia.com/terms/o/opportunitycost.asp
What are your answers?
Thanks alot darlin
Well, Maria seems to have a bit of a spending problem! But don't worry, I'll help you figure it out.
The opportunity cost refers to the value of the next best alternative that Maria had to give up in order to purchase the sun hat and towel. So, let's see what she could have bought with that $20.00.
If we add up the prices of all the items in her cart ($15.00 + $8.00 + $8.00 + $7.00), we get $38.00. However, since Maria only has $20.00 in her pocket, she can't afford all of those items.
So, she needs to make a choice and leave some items behind. The opportunity cost will be the items that she leaves behind. So, if Maria decides to purchase the sun hat and towel, the opportunity cost would be:
- The magazines because she won't be able to buy them with her $20.00
- The bathing suit because she won't be able to buy it with her $20.00
So, the correct answers are:
- the magazines
- the bathing suit
To determine the opportunity cost of Maria's purchase, we need to identify the items that Maria did not choose to purchase because of her limited budget. In this case, Maria only has $20.00 in her pocket and decides to purchase the sun hat and towel, which cost a total of $15.00 + $7.00 = $22.00. Since she cannot afford the full amount, she will have to give up some items.
To find the opportunity cost, we need to subtract the total cost of the items Maria chose to purchase from the total cost of the items she wanted to purchase but couldn't afford.
The total cost of all the items Maria wanted to purchase is the sum of the prices of the bathing suit, sun hat, magazines, and beach towel, which is $15.00 + $8.00 + $8.00 + $7.00 = $38.00.
The total cost of the items she chose to purchase, which are the sun hat and towel, is $15.00 + $7.00 = $22.00.
Now, to find the opportunity cost, we calculate the difference between the total cost of all the items she wanted to purchase and the total cost of the items she chose to purchase:
$38.00 - $22.00 = $16.00
Therefore, the opportunity cost of Maria's purchase is $16.00.
From the given choices, the correct answers for the opportunity cost of her purchase are:
1) the magazines
2) the bathing suit
These are the items she wanted to purchase but couldn't afford because of her limited budget.