Madeleine allows herself $100 per month for purchasing coffee. The diagram below illustrates the choices available to her each month.
FIGURE 1-3
Refer to Figure 1-3. For Madeleine, the opportunity cost of one latte is
◦ 1/4 of a latte.
◦ 1/4 of a regular coffee.
◦ 4 regular coffees.
◦ 8 regular coffees.
◦ 80 regular coffees.