Suppose a gardener produces both green beans and corn in her garden.If she must give up 14 bushels of corn to get 5 bushels of green beans,then her opportunity cost of 1 bushel of green beans is
A) 0.36 bushel of corn.
B) 2.8 bushels of corn.
C) 14 bushels of corn.
D) 70 bushels of corn.

Question

Quizplus · Accepted Answer

The opportunity cost of producing green beans is the value of the highest valued alternative that must be forgone in order to produce them. In this case, the gardener must give up 14 bushels of corn to produce 5 bushels of green beans. Therefore, the opportunity cost of producing 1 bushel of green beans is 14/5 bushels of corn, which simplifies to 2.8 bushels of corn.

Suppose a Gardener Produces Both Green Beans and Corn in Her