Use the following to answer questions:
-If farmer Sam MacDonald can produce 200 kilograms of cabbages and no potatoes or no cabbages and 100 kilograms of potatoes and if he faces a linear production possibility frontier,the opportunity cost of producing an additional kilogram of potatoes is _____ kilogram(s)of cabbage.
A) 0.5
B) 2
C) 100
D) 200

Question

Use the following to answer questions: 
-If farmer Sam MacDonald can produce 200 kilograms of cabbages and no potatoes or no cabbages and 100 kilograms of potatoes and if he faces a linear production possibility frontier,the opportunity cost of producing an additional kilogram of potatoes is _____ kilogram(s)of cabbage.
A) 0.5 
B) 2 
C) 100 
D) 200

Quizplus · Accepted Answer

If farmer Sam MacDonald produces only cabbages, he can produce 200 kilograms. If he produces only potatoes, he can produce 100 kilograms. This means that in order to produce one additional kilogram of potatoes, he must give up the opportunity to produce 2 kilograms of cabbages (200/100=2). Therefore, the opportunity cost of producing an additional kilogram of potatoes is 2 kilograms of cabbage.

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