If the consumer's budget constraint is given by 10F + 5S = 100 where F is...

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If the consumer's budget constraint is given by 10F + 5S = 100 where F is...

If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter?

A 5

B 2

C 15

D 20

business economics

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Answer 1

Answer #1

10F + 5S = 100

Opportunity cost of food in terms of shelter = Price of food / Price of Shelter

Opportunity cost of food in terms of shelter = 10 / 5

Opportunity cost of food in terms of shelter = 2

Answer: Option (B).

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Answer 2

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