Suppose a gardener produces both tomatoes and squash in his garden. If he must give 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is

a.)0.62 bushels of squash
b.) 1.6 bushels of squash
c.) 3 bushels of squash
d.) 5 bushels of squash

The opportunity cost of 1 bushel of tomatoes of a farmer that produces both tomatoes and squash in his garden. In the following scheme 8 bushels of squash to get 5 bushels of tomatoes

Is:

b.) 1.6 bushels of squash

Explanation:

Opportunity cost is the concept in the business, administrative, and financial sciences that explain the cost difference obtained after comparing the different available options a business has to produce and the cost, price, and profit attache to it. Its formula is

Opportunity cost= Fo- CO

Where: FO means: return of the best-forgone option

CO: Return of the chosen option.

However in our case, we can't compare because we don't have any other option, so we only divide the investment by the produced well.

Suppose a gardener produces both tomatoes and squash in his garden. If he must give 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is a.)0.62 bushels of squash b.) 1.6 bushels of squash c.) 3 bushels of squash d.) 5 bushels of squash

Respuesta :

Otras preguntas

Suppose a gardener produces both tomatoes and squash in his garden. If he must give 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is

a.)0.62 bushels of squash
b.) 1.6 bushels of squash
c.) 3 bushels of squash
d.) 5 bushels of squash