If Farmer Sam MacDonald can produce 200 pounds of cabbages and 0 pounds of potatoes or 0 pounds of cabbages and 100 pounds of potatoes and faces a linear possibilities curve for his farm, the opportunity cost of producing an additional pound of cabbage is ____ __ pound(s) of potatoes.
A) 1/2
B) 2
C) 100
D) 200

Question

Quizplus · Accepted Answer

The opportunity cost of producing an additional pound of cabbage is 1/2 pound of potatoes. This is because Farmer Sam MacDonald can produce 200 pounds of cabbages and 0 pounds of potatoes or 0 pounds of cabbages and 100 pounds of potatoes. So, to produce an additional pound of cabbage, he must give up 1/2 pound of potatoes.

If Farmer Sam MacDonald Can Produce 200 Pounds of Cabbages