explain why a relative price is an opportunity cost.\nthe money price of a box of ramen noodles is $0.60 and…

explain why a relative price is an opportunity cost.\nthe money price of a box of ramen noodles is $0.60 and the money price of a pack of microwave popcorn is $1.80.\nthe opportunity cost of a pack of microwave popcorn is \na. 3.00 boxes of ramen noodles, which is the relative price of a pack of microwave popcorn\nb. 0.33 packs of microwave popcorn\nc. $1.80, the price of a pack of microwave popcorn\nd. $0.60, the money price of a box of ramen noodles\nthe relative price of a pack of microwave popcorn is an opportunity cost because \na. it is expressed as a money price\nb. the relative price tells us how many packs of microwave popcorn we must give up to get a box of ramen noodles\nc. the relative price tells us how many boxes of ramen noodles we must give up to get a pack of microwave popcorn\nd. it is constant

explain why a relative price is an opportunity cost.\nthe money price of a box of ramen noodles is $0.60 and the money price of a pack of microwave popcorn is $1.80.\nthe opportunity cost of a pack of microwave popcorn is \na. 3.00 boxes of ramen noodles, which is the relative price of a pack of microwave popcorn\nb. 0.33 packs of microwave popcorn\nc. $1.80, the price of a pack of microwave popcorn\nd. $0.60, the money price of a box of ramen noodles\nthe relative price of a pack of microwave popcorn is an opportunity cost because \na. it is expressed as a money price\nb. the relative price tells us how many packs of microwave popcorn we must give up to get a box of ramen noodles\nc. the relative price tells us how many boxes of ramen noodles we must give up to get a pack of microwave popcorn\nd. it is constant

Answer

Brief Explanations:

  1. To find the opportunity cost of a pack of microwave popcorn in terms of ramen noodles, we divide the money - price of popcorn by the money - price of ramen noodles. The money - price of a pack of microwave popcorn is $1.80 and of a box of ramen noodles is $0.60. So, $\frac{1.80}{0.60}=3$. This means for every pack of microwave popcorn, we give up 3 boxes of ramen noodles, which is the relative price.
  2. The relative price is an opportunity cost because it shows the quantity of one good (ramen noodles) that must be given up to obtain one unit of another good (microwave popcorn).

Answer:

  1. A. 3.00 boxes of ramen noodles, which is the relative price of a pack of microwave popcorn
  2. C. the relative price tells us how many boxes of ramen noodles we must give up to get a pack of microwave popcorn