-Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the farmer?
A) 1 hours of labour
B) 4 hours of labour
C) 1/4 kilogram of meat
D) 4 kilograms of meat

Question

-Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the farmer?
A) 1 hours of labour 
B) 4 hours of labour 
C) 1/4 kilogram of meat 
D) 4 kilograms of meat

Quizplus · Accepted Answer

The opportunity cost of producing 1 kilogram of potatoes is the amount of meat that could have been produced with the same resources. If 1 kilogram of potatoes costs 1/4 kilogram of meat, then that is the opportunity cost.