Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is 240 000$. ATVs cost 6000$ each and snowmobiles cost 12000$ each.

Question

Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is 240 000$. ATVs cost 6000$ each and snowmobiles cost 12000$ each.

. What is the opportunity cost of one ATV?
The opportunity cost of one ATV is _______ automobiles

Answer 1

To determine the opportunity cost of one ATV, we need to compare it with the cost of an alternative option. In this case, the alternative option is a snowmobile, which costs $12,000 each.

Opportunity Cost of One ATV = Cost of Alternative Option / Quantity of Alternative Option
Opportunity Cost of One ATV = $12,000 / 1 = $12,000

Therefore, the opportunity cost of one ATV is $12,000.

Answer 2

To determine the opportunity cost of one ATV, we need to compare it to the cost of an alternative item. In this case, the alternative item is automobiles.

To calculate the opportunity cost, we can divide the cost of one ATV ($6000) by the cost of one automobile. However, the cost of an automobile is not given in the question, so we cannot provide an exact answer for the opportunity cost of one ATV in terms of automobiles.

Answer 3

To determine the opportunity cost of one ATV, we need to compare it to an alternative option. In this case, we will compare it to the cost of purchasing automobiles.

The cost of one ATV is $6000, and we can divide the total budget of $240,000 by the cost of one ATV ($6000) to find out how many ATVs we can purchase:

240,000 / 6000 = 40

So, with the budget of $240,000, we can purchase a total of 40 ATVs.

Now, let's calculate the opportunity cost by comparing the cost of one ATV to the cost of automobiles. Assuming that the cost of one automobile is $20,000, we can use this information to calculate the opportunity cost.

Opportunity cost = Cost of one automobile / Cost of one ATV

Opportunity cost = $20,000 / $6000

Opportunity cost = 3.33 automobiles

Therefore, the opportunity cost of one ATV is approximately 3.33 automobiles.

Suppose you own an outdoor recreation company and you want to purchase​ all-terrain vehicles​ (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is ​240 000$. ATVs cost 6000​$ each and snowmobiles cost ​12000$ each.

To determine the opportunity cost of one ATV, we need to compare it with the cost of an alternative option. In this case, the alternative option is a snowmobile, which costs $12,000 each.

To determine the opportunity cost of one ATV, we need to compare it to the cost of an alternative item. In this case, the alternative item is automobiles.

To determine the opportunity cost of one ATV, we need to compare it to an alternative option. In this case, we will compare it to the cost of purchasing automobiles.

Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is 240 000$. ATVs cost 6000$ each and snowmobiles cost 12000$ each.