Question

Assume that it takes a worker three hours of labor time to paint a room and eight hours to sand a floor. Suppose that a second worker (same productivity as the first worker) became available. Now what would be the opportunity cost of painting four rooms? Please Explain in detail.

Answer 1

Productivity

Activity	Time
Painting room	3 hours of labor
Sand Floor	8 hours of labor

Note: Both workers are having the same productivity.

Therefore, if we consider that these are the only two activities can be done then for the labor the value of these two activity will be equal

paints a room / three hours and Sand a floor / 8 hours

Thus, 1 room paint / 3 hours = 1 sand floor/ 8 hours

1 room Paint =

or,

Opportunity Cost

Activity
1 Room Painting	0.375 Sand Floor
1 Sand a Floor	2.67 Room Paint

This means when a worker is painting a room then in that time he has to sacrifice 0.375 floor

or, when a worker is Sand a floor then in that time he has to sacrifice 2.67 Rooms painting.

For 1 room = 0.375 Sand Floor

4 rooms = 4*0.375 Sand Floor = 1.5 Sand Floor

Therefore, if workers decide to Paint 4 rooms then, they will not be able to Sand 1.5 floor.

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