Refer to the information provided in Figure 19.1 below to answer the questions that follow.
Figure 19.1
-Refer to Figure 19.1.The opportunity cost of producing a bushel of alfalfa in Canada is

Question

Refer to the information provided in Figure 19.1 below to answer the questions that follow.
  Figure 19.1
-Refer to Figure 19.1.The opportunity cost of producing a bushel of alfalfa in Canada is

Quizplus · Accepted Answer

According to the slope of the PPF curve, producing one additional bushel of alfalfa requires sacrificing the production of one bushel of soybeans. Therefore, the opportunity cost of producing a bushel of alfalfa in Canada is one bushel of soybeans.

The best choice depends on the specific circumstances and objectives of the decision maker, as well as the availability and demand for alfalfa and soybeans in the market. If the market price for alfalfa is higher than the opportunity cost of producing it, it may be profitable to produce alfalfa even if it means sacrificing the production of soybeans. However, if the market price for soybeans is higher or there is more demand for soybeans, it may be better to produce soybeans and forego some of the potential benefits of producing alfalfa. Ultimately, the decision should be based on a cost-benefit analysis and a comparison of the potential gains and losses of each option.

Refer to the Information Provided in Figure 19