Math

QuestionWhat is the opportunity cost of buying one stapler if staplers are \$10 and pens are \$2.50, with a \$100 budget?

Studdy Solution

STEP 1

Assumptions1. The budget is 100.Thecostofonestapleris100. The cost of one stapler is 103. The cost of one pen is $.504. The budget can only be spent on staplers and pens5. The opportunity cost is defined as the number of pens that could be bought instead of one stapler

STEP 2

First, we need to find out how many pens can be bought with the cost of one stapler. We can do this by dividing the cost of one stapler by the cost of one pen.
Opportunitycost=Costofonestapler/CostofonepenOpportunity\, cost = Cost\, of\, one\, stapler / Cost\, of\, one\, pen

STEP 3

Now, plug in the given values for the cost of one stapler and the cost of one pen to calculate the opportunity cost.
Opportunitycost=$10/$2.50Opportunity\, cost = \$10 / \$2.50

STEP 4

Calculate the opportunity cost.
Opportunitycost=$10/$2.50=4Opportunity\, cost = \$10 / \$2.50 =4The opportunity cost of purchasing one stapler is4 pens.

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