Answered

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1. Doctor Baskin is a dentist, but as a hobby, he restores vintage cars and enters them in auto
shows. Currently, Baskin works at his practice five days a week and forty-eight weeks a year.
Seeing about twenty patients a day, at an average of $50 per patient, the doctor's practice
makes about $5,000 a week, or $240,000 per year. However, Baskin, who loves his hobby
dearly, is considering going to a four-day work week forty-five weeks a year. This will allow
him to spend every Friday working on cars, and will give him three weeks to prepare for
the big shows. Baskin figures that he can go from making $500 per year to $2,500 a year in
prize money at the car shows. If Baskin decides to proceed with the four-day week, what is
his opportunity cost?
A. The decision to change schedules is the opportunity cost.
B. The opportunity cost is the $2,000 increase in prizes and the time spent working on
cars.
C. The opportunity cost is about $58,000 per year (i.e. $60,000 less dentistry income
minus the additional prize income).
D. The opportunity cost is the reduced time spent working on teeth and the increased
time he will be forced to work on cars.

Sagot :

marvineetesh3

The opportunity cost of Doctor Baskin is, to reduced time spent working on teeth and the increased time he will be forced to work on cars.

What is the opportunity cost?

The opportunity cost is defined as the cost of the next favorable and best alternatives from the given choices. The best alternatives can be defined by the sacrifice made to another alternatives.

In the given case, Baskin had the two opportunities, the first one hobby is to work a dentist and the another one is to make the auto shows from the waste car.

If Baskin decides to go with the four-day week, the opportunity cost is the reduced time spent working on teeth and the additional time he will be obliged to concentrate on vehicles.

Therefore, option D is correct.

To learn more about the opportunity cost, refer to:

https://brainly.com/question/13036997

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