Carmelita can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures. If she now performs 35 manicures and 70 pedicures, what is the opportunity cost of performing an additional 15 manicures?

a. 5 pedicures

b. 20 pedicures

c. 25 pedicures

d. 45 pedicures

25 pedicures

Explanation:

Opportunity cost is what you decide to give up when you do something.

For example the opportunity cost of going out to play is staying home to do your assignment.

In the first scenario Carmelita can do 35 manicures and 70 pedicures.

In scenario 2 she can do 50 manicures and 45 pedicures.

She has already done 35 manicures and 70 pedicures.

If she does an additional 15 manicures, she would have fulfilled part of scenario 2 (that is 50 manicures). She did 35 manicures + 15 new manicures = 50.

So the action forgone in completing scenario 2 is 70 pedicures - 45 pedicures

That is 25 pedicures