Use the production possibilities data below to answer the following question(s).
Table 2-3

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

Question

Use the production possibilities data below to answer the following question(s).
Table 2-3
 
-Refer to Table 2-3. The opportunity cost of 1 pound of meat for the rancher is
A) 4 hours of labor. 
B) 5 hours of labor. 
C) 4/5 pounds of potatoes. 
D) 5/4 pounds of potatoes.

Quizplus · Accepted Answer

The opportunity cost of producing one good is the amount of another good that must be given up. If the rancher can produce 4 pounds of meat or 5 pounds of potatoes in the same time, then the opportunity cost of 1 pound of meat is 4/5 pounds of potatoes.

Use the Production Possibilities Data Below to Answer the Following