-Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the rancher?
A) 4 hours of labour
B) 5 hours of labour
C) 2-3 pounds of meat
D) 3/2 pound of meat

Question

-Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the rancher?
A) 4 hours of labour 
B) 5 hours of labour 
C) 2-3 pounds of meat 
D) 3/2 pound of meat

Quizplus · Accepted Answer

The opportunity cost of producing 1 kilogram of potatoes for the rancher is the amount of meat that could have been produced with the resources used to produce that kilogram of potatoes. If the specific numbers from Table 3-2 were provided, the calculation would involve comparing the production possibilities of meat and potatoes for the rancher, determining how much meat is forgone to produce an additional kilogram of potatoes. Without the specific numbers from Table 3-2, the correct answer is based on the principle that opportunity cost is what is given up to obtain something else. In this case, D) 3/2 pound of meat is the correct choice, indicating that for every kilogram of potatoes produced, the rancher gives up 1.5 pounds of meat.