Table 3-1

-Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the rancher
A)4 hours of labour
B)3 hours of labour
C)4/3 kg of meat
D)3/4kg of meat

Question

Table 3-1
 
-Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the rancher
A)4 hours of labour 
B)3 hours of labour 
C)4/3 kg of meat 
D)3/4kg of meat

Quizplus · Accepted Answer

According to the table, the rancher can produce 3 kg of meat in the same amount of time it takes to produce 4 kg of potatoes. Therefore, the opportunity cost of 1 kg of potatoes for the rancher is 4/3 kg of meat. In order to make the best choice, the rancher should produce potatoes only if he can sell them for more than 4/3 kg of meat. Otherwise, he should focus on producing meat.

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