Figure 2-2

-Assume that U.S.agricultural land is used either to raise cattle for beef or to grow wheat.Figure 2-2 represents the production possibility frontier for beef and wheat.Between points F and G,the opportunity cost increasing wheat by two bushels equals

Question

Figure 2-2
 
-Assume that U.S.agricultural land is used either to raise cattle for beef or to grow wheat.Figure 2-2 represents the production possibility frontier for beef and wheat.Between points F and G,the opportunity cost increasing wheat by two bushels equals

Quizplus · Accepted Answer

The opportunity cost is calculated by the amount of beef that must be given up to produce additional wheat. If moving from point F to G results in an increase of two bushels of wheat, and the opportunity cost is 0.25 million pounds of beef, then this is the correct choice.

Figure 2-2 -Assume That U.S.agricultural Land Is Used Either to Raise Cattle