Juanita and gilberto need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. juanita is pretty good with a post auger; she can dig the holes in 1 hour. gilberto is somewhat slow; it takes him 5 hours to dig the holes. juanita earns $200 per hour as a psychiatrist, while gilberto earns $15 per hour as a cobbler. keeping in mind that either juanita or gilberto must take time off from work to dig the holes, who has the lower opportunity cost of completing the task?

Gilberto

Explanation:

Juanita can dig the necessary holes for the fence in one hour. At work, she makes $200 per hour. This means that the opportunity cost of her digging the holes would be $200. On the other hand, Gilberto earns $15 per hour as a cobbler. Moreover, it takes him 5 hours to dig the holed. Therefore, the opportunity cost of him digging the holes would be $75 (15*5). This means that Gilberto has the lower opportunity cost of completing the task.

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