The opportunity cost is the alternative that is rejected when making an economic decision. If Raj increased his production in the second day, it can be due to two reasons: he worked longer or he worked harder. In both cases he has refused to an alternative option.
On Day 2, Raj makes 70 more bagels than on Day 1. What is the opportunity cost of producing 70 more bagels? 100 doughnuts
On Day 3, Raj makes 50 more croissants than on Day 2. What is the opportunity cost of producing fifty more croissants? 70 bagels
