Suppose a gardener produces both green beans and corn in her garden. If she must give up 20 bushels of corn to get 4 bushels of green beans, what is the opportunity cost of 1 bushel of green beans?
A) 1/5 bushel of corn
B) 5 bushels of corn
C) 16 bushels of corn
D) 24 bushels of corn

Question

Quizplus · Accepted Answer

The opportunity cost of 1 bushel of green beans is the amount of corn that must be given up to get it. Given that 20 bushels of corn are given up for 4 bushels of green beans, the opportunity cost per bushel of green beans is 20/4 = 5 bushels of corn.

Suppose a Gardener Produces Both Green Beans and Corn in Her