If a farmer can grow 100 tubs of grapefruit or 250 tubs of oranges per acre of land, what is the opportunity cost of growing one orange?

Question

Quizplus · Accepted Answer

The opportunity cost of growing one orange is the amount of grapefruit that must be given up to grow that orange. In this case, the farmer can grow 100 tubs of grapefruit or 250 tubs of oranges per acre of land. So, the opportunity cost of growing one orange is 1/2.5 = 0.4 of a grapefruit.

If a Farmer Can Grow 100 Tubs of Grapefruit or 250