The opportunity cost of cotton:

Question

Quizplus · Accepted Answer

The opportunity cost of cotton can be considered a negative or positive opportunity cost depending on whether it could have been used as an export or an import. In the analysis of public projects, it is important to consider both the direct and indirect costs and benefits. If producing cotton for domestic use has a higher opportunity cost than producing it for export, then producing for export would create a positive opportunity cost, while producing it for domestic use would result in a negative opportunity cost. Therefore, the answer is C.

The Opportunity Cost of Cotton