explain why a relative price is an opportunity cost. the money price of a kilogram of bananas is $0.60 and…

explain why a relative price is an opportunity cost. the money price of a kilogram of bananas is $0.60 and the money price of a jar of pasta sauce is $1.80. the opportunity cost of a jar of pasta sauce is a. $0.60, the money price of a kilogram of bananas b. $1.80, the price of a jar of pasta sauce c. 3.00 kilograms of bananas, which is the relative price of a jar of pasta sauce d. 0.33 jars of pasta sauce the relative price of a jar of pasta sauce is an opportunity cost because a. the relative price tells us how many kilograms of bananas we must give up to get a jar of pasta sauce b. it is constant c. the relative price tells us how many jars of pasta sauce we must give up to get a kilogram of bananas d. it is expressed as a money price

explain why a relative price is an opportunity cost. the money price of a kilogram of bananas is $0.60 and the money price of a jar of pasta sauce is $1.80. the opportunity cost of a jar of pasta sauce is a. $0.60, the money price of a kilogram of bananas b. $1.80, the price of a jar of pasta sauce c. 3.00 kilograms of bananas, which is the relative price of a jar of pasta sauce d. 0.33 jars of pasta sauce the relative price of a jar of pasta sauce is an opportunity cost because a. the relative price tells us how many kilograms of bananas we must give up to get a jar of pasta sauce b. it is constant c. the relative price tells us how many jars of pasta sauce we must give up to get a kilogram of bananas d. it is expressed as a money price

Answer

Brief Explanations:

  1. To find the opportunity - cost of a jar of pasta sauce in terms of bananas, we divide the price of pasta sauce by the price of bananas. The money price of a jar of pasta sauce is $1.80 and of a kilogram of bananas is $0.60. So, $\frac{1.80}{0.60}=3$ kilograms of bananas. This is the relative price of a jar of pasta sauce and represents the opportunity cost as it shows how many kilograms of bananas we must give up to get a jar of pasta sauce.
  2. The relative price is an opportunity cost because it tells us the quantity of one good (bananas) we must sacrifice to obtain another good (pasta sauce).

Answer:

  1. C. 3.00 kilograms of bananas, which is the relative price of a jar of pasta sauce
  2. A. the relative price tells us how many kilograms of bananas we must give up to get a jar of pasta sauce