Table 3-31

-Refer to Table 3-31. For the farmer, the opportunity cost of 1 pound of meat is
A)0.625 pound of potatoes.
B)1.6 pounds of potatoes.
C)5 pounds of potatoes.
D)8 pounds of potatoes.

Question

Table 3-31
​ 
-Refer to Table 3-31. For the farmer, the opportunity cost of 1 pound of meat is
A)0.625 pound of potatoes. 
B)1.6 pounds of potatoes. 
C)5 pounds of potatoes. 
D)8 pounds of potatoes.

Quizplus · Accepted Answer

The opportunity cost of 1 pound of meat is the amount of potatoes given up to produce 1 pound of meat. From the table, we can see that in order to produce 1 pound of meat, the farmer gives up 1/0.625 = 1.6 pounds of potatoes. Therefore, the best choice is B.

Table 3-31 ​

Table 3-31