Table 3-20
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.
-Refer to Table 3-20. What is Brad's opportunity cost of producing one bushel of wheat?
A)5/6 pound of beef
B)6/5 pounds of beef
C)3/5 pounds of beef
D)5/3 pounds of beef

Question

Table 3-20
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. 
-Refer to Table 3-20. What is Brad's opportunity cost of producing one bushel of wheat?
A)5/6 pound of beef 
B)6/5 pounds of beef 
C)3/5 pounds of beef 
D)5/3 pounds of beef

Quizplus · Accepted Answer

The opportunity cost of producing one bushel of wheat is the amount of beef Brad has to give up. If Brad's opportunity cost is 5/6 pound of beef per bushel of wheat, it means he sacrifices 5/6 pound of beef to produce one bushel of wheat.

Table 3-20 Assume That Brad and Theresa Can Switch Between Producing Wheat