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 pound of beef?
A)5/6 bushel of wheat
B)6/5 bushels of wheat
C)3/5 bushels of wheat
D)5/3 bushels of wheat

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 pound of beef?
A)5/6 bushel of wheat 
B)6/5 bushels of wheat 
C)3/5 bushels of wheat 
D)5/3 bushels of wheat

Quizplus · Accepted Answer

To find the opportunity cost of producing one pound of beef, we need to see how much wheat Brad would have to give up to produce one pound of beef. From the table, we see that Brad can produce 2 pounds of beef for every 3 bushels of wheat he gives up. Therefore, to produce one pound of beef, Brad would have to give up 3/2 bushels of wheat. Simplifying, we get 6/5 bushels of wheat as his opportunity cost.

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