-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 raising another 100 cows?
A)5.0 tonnes of potatoes
B)100 cows
C)1.25 tonnes of potatoes
D)1.0 tonne of potatoes
E)3.0 tonnes of potatoes

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 raising another 100 cows?
A)5.0 tonnes of potatoes 
B)100 cows 
C)1.25 tonnes of potatoes 
D)1.0 tonne of potatoes 
E)3.0 tonnes of potatoes

Quizplus · Accepted Answer

The opportunity cost of raising another 100 cows is the amount of potatoes that Gabriel has to give up. According to the production possibilities frontier, this is 1.25 tonnes of potatoes.

-Gabriel Owns a Farm in Victoria Where He Raises Cattle