If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no cabbages and 100 pounds of potatoes and if he faces a linear production possibility frontier,the opportunity cost of producing an additional pound of cabbage is _____ pound(s)of potatoes.

Question

Quizplus · Accepted Answer

The opportunity cost of producing an additional pound of cabbage is 0.5 pounds of potatoes, as moving from 0 to 200 pounds of cabbages means giving up 100 pounds of potatoes, leading to an opportunity cost of 100/200 = 0.5 pounds of potatoes per pound of cabbage.

If Farmer Sam MacDonald Can Produce 200 Pounds of Cabbages