Table 3-2

-Refer to Table 3-2.What is the opportunity cost of 1 kilogram of meat for the farmer
A)1/4 hour of labour
B)1 hour of labour
C)4 kilograms of potatoes
D)1/4 kilogram of potatoes

Question

Table 3-2
 
-Refer to Table 3-2.What is the opportunity cost of 1 kilogram of meat for the farmer
A)1/4 hour of labour 
B)1 hour of labour 
C)4 kilograms of potatoes 
D)1/4 kilogram of potatoes

Quizplus · Accepted Answer

According to the table, the farmer can produce 4 kilograms of potatoes or 1 kilogram of meat with 1 hour of labor. Therefore, the opportunity cost of 1 kilogram of meat for the farmer is 4 kilograms of potatoes. The best choice for the farmer would be to produce potatoes as the opportunity cost of producing 1 kilogram of meat is higher than producing 4 kilograms of potatoes.

Table 3-2 -Refer to Table 3-2.What Is the Opportunity Cost of 1