-Gabriel owns a farm in Victoria where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of growing another tonne of potatoes?
A)1 tonne of potatoes
B)100 cows
C)80 cows
D)400 cows
E)0 cows

Question

-Gabriel owns a farm in Victoria where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of growing another tonne of potatoes?
A)1 tonne of potatoes 
B)100 cows 
C)80 cows 
D)400 cows 
E)0 cows

Quizplus · Accepted Answer

The opportunity cost of growing another tonne of potatoes is the number of cows Gabriel has to give up. According to the production possibilities frontier, this is 80 cows.

-Gabriel Owns a Farm in Victoria Where He Raises Cattle