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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 llames, who has the lowest opportunity cost of completing the task? a. Alexb. Becky and Alex face equal opportunity costs c. Becky

Answer :

Answer:

option (A) Alex

Explanation:

Data provided in the question;

Earnings per hour of Becky = $120

Earnings per hour of Alex = $15

Hours taken to complete the task by Becky = 1 hour

Hours taken to complete the task by Alex = 6 hours

Now,

The opportunity cost for Becky

= Earnings per hour × Time taken to complete the task

= $120 × 1

= $120

and,

The opportunity cost for Alex

= Earnings per hour × Time taken to complete the task

= $15 × 6

= $90

Therefore,

The opportunity cost for the Alex is lowest

Hence, The correct answer is option (A) Alex

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