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 potatoes for the farmer is
A) 1/4 pound of meat.
B) 2 hours of labor.
C) 4 pounds of meat.
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 potatoes for the farmer is
A) 1/4 pound of meat. 
B) 2 hours of labor. 
C) 4 pounds of meat. 
D) 8 hours of labor.

Quizplus · Accepted Answer

According to the table, the farmer can produce 4 pounds of meat by giving up 1 pound of potatoes. Therefore, the opportunity cost of 1 pound of potatoes for the farmer is 4 pounds of meat.

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