Claire and Dag are farmers who produce beef and corn. In a year, Claire can produce 16 tons of beef or 40 bushels of corn, while Dag can produce 5 tons of beef or 25 bushels of corn. The opportunity cost of producing a ton of beef is

Question

Quizplus · Accepted Answer

The opportunity cost of producing a ton of beef is the amount of corn that could have been produced instead. Claire can produce 16 tons of beef or 40 bushels of corn, so her opportunity cost of producing one ton of beef is 40/16 = 2.5 bushels of corn. Dag can produce 5 tons of beef or 25 bushels of corn, so his opportunity cost of producing one ton of beef is 25/5 = 5 bushels of corn. Therefore, the answer is A, as it provides the opportunity cost for both farmers.

Claire and Dag Are Farmers Who Produce Beef and Corn