In the above figure, what is the opportunity cost of one bushel of soybeans?
A) 1 bushel of corn
B) 0.5 bushels of corn
C) 2 bushels of corn
D) unable to determine

Question

Quizplus · Accepted Answer

The opportunity cost of one bushel of soybeans is the amount of corn that must be given up to produce one additional bushel of soybeans. In this case, to produce one more bushel of soybeans, two bushels of corn must be given up, so the opportunity cost of one bushel of soybeans is 0.5 bushels of corn. Therefore, the best choice is B, which is an option that matches the correct opportunity cost.

In the Above Figure, What Is the Opportunity Cost of One