What would be his opportunity cost of an additional hour studying physics?

Question

Hours Studying Physics Score Geology Score

0 40 30

1 50 60

2 60 80

3 85 90

4 90 100

Grant has 4 hours of study time. The date above shows his approximations for grades according to how much he studies. He decides to distribute 2 hours to each subject. What would be the the opportunity cost of an additional hour studying physics?

The correct answer is 20 points on his geology exam.

How did they come to this answer? Can anyone explain pleasee! :( Thank You.

Answer 1

Hi!

I think I know the answer to this!

Basically Grant has 4 hours of study time! If he put all his study time into studying geology he would get a mark at 100%! He decides though to spend two of those hours studying for physics and as a result only spends two hours studying for geology.

These two hours less of studying geology now mean that his mark in geology is now down to 80% (A loss of 20 marks).

So by choosing to study physics for two hours grants oppertunity cost is 20 marks in geology.

Hope that helps and I'm pretty sure I'm right!