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 potatoes for the rancher is
A) 5 hours of labor.
B) 4 hours of labor.
C) 5/4 pounds of meat.
D) 4/5 pound of meat.

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 potatoes for the rancher is
A) 5 hours of labor. 
B) 4 hours of labor. 
C) 5/4 pounds of meat. 
D) 4/5 pound of meat.

Quizplus · Accepted Answer

The opportunity cost of 1 pound of potatoes for the rancher is 5/4 pounds of meat. This is because the rancher could have used the 5 hours of labor required to produce 1 pound of potatoes to produce 5/4 pounds of meat instead.

Use the Production Possibilities Data Below to Answer the Following