If he devotes all of his available resources to cantaloupe production,a farmer can produce 120 cantaloupes.If he sacrifices 1.5 watermelons for each cantaloupe that he produces,it follows that
A)if he devotes all of his available resources to watermelon production he can produce 80 watermelons.
B)he cannot have a comparative advantage over other farmers in producing cantaloupes.
C)his opportunity cost of one watermelon is 2/3 of a cantaloupe.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

If the farmer sacrifices 1.5 watermelons for each cantaloupe, his opportunity cost of producing one cantaloupe is 1.5 watermelons. Therefore, his opportunity cost of one watermelon is 2/3 of a cantaloupe, making option C the correct choice. Option A is not correct because there is no information about the farmer's production capability for watermelons provided in the question. Option B is not correct because we do not know the opportunity cost of other farmers in producing cantaloupes. Therefore, option D is also incorrect.

If He Devotes All of His Available Resources to Cantaloupe