Table 3-10
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.

-Refer to Table 3-10. What is Teresa's opportunity cost of producing one bushel of wheat?
A)1/2 pound of beef
B)5/3 pounds of beef
C)3/5 pounds of beef
D)1 pound of beef

Question

Table 3-10
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.
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-Refer to Table 3-10. What is Teresa's opportunity cost of producing one bushel of wheat?
A)1/2 pound of beef 
B)5/3 pounds of beef 
C)3/5 pounds of beef 
D)1 pound of beef

Quizplus · Accepted Answer

Teresa's opportunity cost of producing one bushel of wheat is determined by how much beef she has to give up to produce that additional bushel. If the table shows that Teresa can produce either a certain amount of wheat or a certain amount of beef, you would calculate the opportunity cost by dividing the amount of beef she can produce by the amount of wheat she can produce. Without the specific numbers from Table 3-10, the general approach is to find the ratio of beef to wheat for Teresa, which represents the amount of beef given up for each bushel of wheat produced. The correct answer, based on the options provided, suggests that for every bushel of wheat Teresa produces, she gives up 5/3 pounds of beef, indicating the opportunity cost of producing wheat in terms of beef.

Table 3-10 Assume That Brad and Theresa Can Switch Between Producing Wheat