Table 3-1

-Refer to Table 3-1.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

Table 3-1
 
-Refer to Table 3-1.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

According to the table, the rancher can produce 5 pounds of meat OR 4 pounds of potatoes in one hour. Therefore, the opportunity cost of 1 pound of meat for the rancher is 4/5 pounds of potatoes (the amount of potatoes the rancher could have produced instead of 1 pound of meat in one hour).

Table 3-1 -Refer to Table 3-1.The Opportunity Cost of 1 Pound of of 1