-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of growing another ton of potatoes?
A) 400 cows
B) 80 cows
C) 100 cows
D) 0 cows
E) 1 ton of potatoes

Question

-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of growing another ton of potatoes?
A) 400 cows 
B) 80 cows 
C) 100 cows 
D) 0 cows 
E) 1 ton of potatoes

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of a good is the amount of the other good that must be forgone. In this case, to grow another ton of potatoes, Gabriel must forgo the production of 80 cows, as indicated by the slope of the production possibilities frontier.

-Gabriel Operates a Ranch in Idaho Where He Raises Cattle