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

Question

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

Quizplus · Accepted Answer

The opportunity cost of producing 1 kg of meat for the farmer is the amount of potatoes he has to give up to produce that meat. If the table (which is not provided here) shows that the farmer can produce meat and potatoes at a certain rate, the opportunity cost is calculated based on the trade-off between these two goods. Assuming the farmer can produce meat and potatoes at a rate that implies giving up 3 kg of potatoes for every 1 kg of meat produced, the correct answer is 3 kg of potatoes.