Assuming farmers can plant either corn or soybeans, as U.S. farmers plant more corn to meet rising global demand
A) the opportunity cost of producing corn increases.
B) the opportunity cost of producing corn decreases.
C) the U.S. PPF for corn and other goods and services shifts outward.
D) the United States produces at a point beyond its PPF.

Question

Quizplus · Accepted Answer

The opportunity cost of producing corn increases because as farmers allocate more resources (land, labor, capital) to corn production to meet the rising demand, they have to give up producing other goods like soybeans. This trade-off means that the cost of producing additional units of corn (in terms of foregone soybeans) increases.

Assuming Farmers Can Plant Either Corn or Soybeans, as U