A farmer has the ability to grow either corn or cotton or some combination of the two.Given no other information,it follows that the farmer's opportunity cost of a bushel of corn multiplied by his opportunity cost of a bushel of cotton
A)is equal to 0.
B)is between 0 and 1.
C)is equal to 1.
D)is greater than 1.

Question

Quizplus · Accepted Answer

The opportunity cost of a bushel of corn is the amount of cotton that could have been produced instead, and vice versa. Since the farmer can only choose between the two crops, the opportunity cost of one will always be the inverse of the other. Therefore, the opportunity cost of a bushel of corn multiplied by the opportunity cost of a bushel of cotton will always be equal to 1.

A Farmer Has the Ability to Grow Either Corn or Cotton