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,then 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)his production possibilities frontier is bowed-out.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one cantaloupe is 1.5 watermelons, meaning the farmer has to give up 1.5 watermelons to produce one cantaloupe. Therefore, the opportunity cost of one watermelon is 2/3 of a cantaloupe. Option A is not necessarily true as we do not know the amount of resources required for watermelon production. Option B is incorrect as we do not have information to compare the farmer's production to other farmers. Option D is not necessarily true as we do not have information on the shape of the farmer's production possibilities frontier.

If He Devotes All of His Available Resources to Cantaloupe