Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1
-Refer to Figure 18.1. The opportunity cost of producing a bushel of alfalfa in the United States is
A) half a bushel of soybeans.
B) 1 bushel of soybeans.
C) 2 bushels of soybeans.
D) 300 bushels of soybeans.

Question

Refer to the information provided in Figure 18.1 below to answer the questions that follow.  Figure 18.1
-Refer to Figure 18.1. The opportunity cost of producing a bushel of alfalfa in the United States is
A) half a bushel of soybeans. 
B) 1 bushel of soybeans. 
C) 2 bushels of soybeans. 
D) 300 bushels of soybeans.

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of alfalfa in the United States is half a bushel of soybeans. This is because the production possibilities curve shows that the United States can produce either 300 bushels of soybeans or 600 bushels of alfalfa. Therefore, the opportunity cost of producing a bushel of alfalfa is 300/600 = 1/2 bushel of soybeans.

Refer to the Information Provided in Figure 18