Suppose a gardener produces both tomatoes and squash in his garden.If he must give up 8 bushels of squash to get 5 bushels of tomatoes,then his opportunity cost of 1 bushel of tomatoes is
A)0.63 bushels of squash.
B)1.6 bushels of squash.
C)3 bushels of squash.
D)5 bushels of squash.

Question

Quizplus · Accepted Answer

Opportunity cost can be calculated as the ratio of the cost of one option to the cost of the other option forgone. The gardener gives up 8 bushels of squash to get 5 bushels of tomatoes. So, the opportunity cost of 1 bushel of tomatoes is 8/5 or 1.6 bushels of squash. Therefore, the answer is B.

Suppose a Gardener Produces Both Tomatoes and Squash in His