Alexi and Tony own a food truck together that serves only two items, street taco

Question

Alexi and Tony own a food truck together that serves only two items, street tacos and Cuban sandwiches. Some customers purchase both goods together therefore, they will always produce both goods 192 Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce, and will split the revenue equally 1600 Output Per Hour 128 Street Tacos Cuban Sandwiches 30 100 Alexi Tony 80 640 Alexi's opportunity cost of producing one taco is 0.38 Cuban sandwiches (Round your response to two decimal places.) Tony's opportunity cost of producing one taco is Cuban sandwiches. (Round your response to two decimal places.) 0 120 240 360 480 600 720 840 Cuban sandwiches

Explanation / Answer

Alexi produces 80 tacos in 1 hr

So in 1 taco in 1/80 hrs

Alexi produces 30 cuban sandwiches in 1 hr

So in 1/80 hrs, 30/80 Cuban sandwiches will be produced

Opportunity cost of producing one taco is 30/80 = 3.8

Tony produces 40 tacos in 1 hr

So 1 taco is produced in 1/40 hrs

Tony produces 100 Cuban sandwiches in 1 hr

In 1/40 hrs, 100/40 Cuban sandwiches will be produced

Opportunity cost of producing 1 taco for Tony is 100/40 = 2.5

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