When Bill's Diner moves from the production combination of 35 burgers and 25 hot dogs to the combination of 25 burgers and 65 hot dogs, what is the opportunity cost of each additional hot dog?

**Instructions:** Round your answer to two decimal places.

 burgers

The opportunity cost of moving from one production combination to another involves determining how much of one good must be given up to produce more of another good. In this case, we need to find out how many burgers are given up to produce each additional hot dog when moving from 35 burgers and 25 hot dogs to 25 burgers and 65 hot dogs.

### Step 1: Calculate the change in the number of burgers.
\[
\text{Change in burgers} = 35 - 25 = 10 \, \text{burgers}
\]

### Step 2: Calculate the change in the number of hot dogs.
\[
\text{Change in hot dogs} = 65 - 25 = 40 \, \text{hot dogs}
\]

### Step 3: Calculate the opportunity cost of each additional hot dog.
The opportunity cost is the number of burgers given up per additional hot dog:

\[
\text{Opportunity cost per hot dog} = \frac{\text{Change in burgers}}{\text{Change in hot dogs}} = \frac{10}{40} = 0.25 \, \text{burgers}
\]

Thus, the opportunity cost of each additional hot dog is **0.25 burgers**.

Would you like any further details or have any questions? Here are some related questions for further exploration:

1. What would be the opportunity cost if the roles of burgers and hot dogs were reversed?
2. How would the opportunity cost change if the initial combination were different?
3. What does a lower opportunity cost indicate in terms of production efficiency?
4. How can Bill's Diner optimize production based on opportunity costs?
5. What factors could influence the opportunity cost of producing additional units of hot dogs or burgers?

**Tip:** Opportunity cost is a key concept in economics, representing the cost of forgoing the next best alternative when making a decision.

Explore how to calculate the opportunity cost when Bill's Diner changes production from 35 burgers and 25 hot dogs to 25 burgers and 65 hot dogs. Understand the economic concept of opportunity cost and its application in decision-making. Suitable for undergraduate students and those interested in economics.

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