Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.The opportunity cost of 1 pound of meat for the farmer is
A) 1/5 pound of potatoes.
B) 1/5 hour of labor.
C) 5 pounds of potatoes.
D) 10 hours of labor.

Question

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-4.The opportunity cost of 1 pound of meat for the farmer is
A) 1/5 pound of potatoes. 
B) 1/5 hour of labor. 
C) 5 pounds of potatoes. 
D) 10 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of producing 1 pound of meat is the amount of potatoes the farmer could have produced instead. If the farmer can produce 5 pounds of potatoes in the time it takes to produce 1 pound of meat, then the opportunity cost is 5 pounds of potatoes.

Table 3-4 Assume That the Farmer and the Rancher Can Switch Between