A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 4 bushels of beans, then her opportunity cost of 1 bushel of beans is 0.25 bushels of corn. 16.00 bushels of corn. 4 bushels of corn. 2.99 bushels of corn.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
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A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 4 bushels of
beans, then her opportunity cost of 1 bushel of beans is
0.25 bushels of corn.
16.00 bushels of corn.
4 bushels of corn.
O 2.99 bushels of corn.
Transcribed Image Text:A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 4 bushels of beans, then her opportunity cost of 1 bushel of beans is 0.25 bushels of corn. 16.00 bushels of corn. 4 bushels of corn. O 2.99 bushels of corn.
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Step 1

Answer:

Opportunity cost: opportunity cost refers to the units of a good sacrificed to produce one more unit of another good.

Here, if the gives up 16 bushels of corn to produce 4 bushels of beans then the opportunity cost will be as given below:

OCbeans=bushels of corn sacrificedbushels of beans producedOCbeans=164OCbeans=4 bushles of corn

The opportunity cost of 1 bushel of beans is 4 bushels of corn.

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