Amy and Bill are fixing up their house by painting walls and installing electric

Question

Amy and Bill are fixing up their house by painting walls and installing electrical outlets.

In one hour, Amy can paint 8 walls, or install 6 outlets.

In one hour, Bill can paint 5 walls, or install 5 outlets

a. If Amy painted 8 walls in the first hour of work, and then switched to doing 6 outlets in the second hour of work, what was the opportunity cost of each of those outlets?

Instructions: Round your answers to two decimal places.

For the third hour, if she switches back to painting 8 walls, what was the opportunity cost of each of those walls?

b. If Bill painted 5 walls in the first hour of work, and then switched to doing 5 outlets in the second hour of work, what was the opportunity cost of each of those outlets?

Instructions: Answer in whole numbers.

For the third hour, if he switches back to painting 5 walls, what was the opportunity cost of each of those walls?

Explanation / Answer

We have been given the information that in one hour, Amy can paint 8 walls, or install 6 outlets and in the same time Bill can paint 5 walls, or install 5 outlets

a. Now that Amy has painted 8 walls in the first hour of work, she also had an opportunity to paint 6 outlets which she rejected. Similarly, she then switched to doing 6 outlets in the second hour of work, so she was not painting the 8 walls. Hence her opportunity cost of each of those outlets is 8/6 or 1.33 walls.

For the third hour, if she switches back to painting 8 walls, the opportunity cost of each of those walls is 6/8 = 0.75 outlets.

b. If Bill painted 5 walls in the first hour of work, and then switched to doing 5 outlets in the second hour of work, the opportunity cost of each of those outlets is the cost of the lost opportunity to paint 5 walls and for 1 outlet, it is 1 wall.

For the third hour, if he switches back to painting 5 walls, the opportunity cost of each of those walls is 1 outlet

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