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

To find the opportunity cost, we must look at the trade-off between producing meat and potatoes. The rancher can produce either 4 pounds of meat or 20 pounds of potatoes with his available resources (80 hours of labor). Therefore, the opportunity cost of 1 pound of meat is 20/4 = 5 pounds of potatoes.

Use the Production Possibilities Data Below to Answer the Following