Figure 3-1
-Refer to Figure 3-1. What is the opportunity cost of 1 bushel of wheat for Cliff?
A) 1/3 bushel of corn
B) 2/3 bushel of corn
C) 1 bushel of corn
D) 3/2 bushels of corn

Question

Figure 3-1 
-Refer to Figure 3-1. What is the opportunity cost of 1 bushel of wheat for Cliff?
A) 1/3 bushel of corn 
B) 2/3 bushel of corn 
C) 1 bushel of corn 
D) 3/2 bushels of corn

Quizplus · Accepted Answer

According to the graph, the opportunity cost of 1 bushel of wheat for Cliff is 2/3 bushel of corn. Therefore, Cliff should specialize in producing wheat and trade with Jill for corn. This way, both parties can benefit from the trade and consume more of both goods.

Figure 3-1 -Refer to Figure 3-1. What Is the Opportunity Cost of Opportunity