Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.The opportunity cost of 1 pound of meat for the farmer is
A) 1/4 pound of potatoes.
B) 1/4 hour of labor.
C) 4 pounds of potatoes.
D) 8 hours of labor.

Question

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-4.The opportunity cost of 1 pound of meat for the farmer is
A) 1/4 pound of potatoes. 
B) 1/4 hour of labor. 
C) 4 pounds of potatoes. 
D) 8 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of 1 pound of meat for the farmer is 4 pounds of potatoes. Therefore, if the farmer were to produce 1 pound of meat, he would have to give up the production of 4 pounds of potatoes. Therefore, producing potatoes would be a better choice for the farmer.

Table 3-4 Assume That the Farmer and the Rancher Can Switch Between