-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 raising another 100 cows?
A) 1.25 tons of potatoes
B) 5.0 tons of potatoes
C) 3.0 tons of potatoes
D) 1.0 ton of potatoes
E) 100 cows

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 raising another 100 cows?
A) 1.25 tons of potatoes 
B) 5.0 tons of potatoes 
C) 3.0 tons of potatoes 
D) 1.0 ton of potatoes 
E) 100 cows

Quizplus · Accepted Answer

The opportunity cost of raising another 100 cows is the amount of potatoes that Gabriel must give up to do so. Moving from point A to point B on the production possibilities frontier shows that Gabriel must give up 1.25 tons of potatoes to raise another 100 cows.

-Gabriel Operates a Ranch in Idaho Where He Raises Cattle