Table 3-1

-Refer to Table 3-1. What is the opportunity cost of 1 kg of potatoes for the Rancher?
A)4 hours of labour.
B)5 hours of labour.
C)5/4 kg of meat.
D)4/5 kg of meat.

Question

Table 3-1
 
-Refer to Table 3-1. What is the opportunity cost of 1 kg of potatoes for the Rancher?
A)4 hours of labour. 
B)5 hours of labour. 
C)5/4 kg of meat. 
D)4/5 kg of meat.

Quizplus · Accepted Answer

According to the table, in order to produce 1 kg of potatoes, the Rancher must give up producing 5/4 kg of meat. This means that the opportunity cost of 1 kg of potatoes for the Rancher is 5/4 kg of meat. Therefore, the best choice is the option C.

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