Suppose a gardener produces both green beans and corn in her garden.If the opportunity cost of one bushel of corn is 3/5 bushel of green beans,then the opportunity cost of 1 bushel of green beans is
A)5/3 bushels of corn.
B)2/5 bushel of corn.
C)5/2 bushels of corn.
D)8/5 bushels of corn.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of giving up the next best alternative. Here, the opportunity cost of one bushel of corn is 3/5 bushel of green beans. This means that if the gardener decides to produce one bushel of corn, she must give up 3/5 bushel of green beans. The reciprocal of 3/5 is 5/3, which means that the opportunity cost of one bushel of green beans is 5/3 bushels of corn. Therefore, the best choice is (A).

Suppose a Gardener Produces Both Green Beans and Corn in Her