Chapter 2, Problem 2P

To determine

(a) Farmers use 40 million acres land to produce 1.8 billion bushels of wheat and 60 million acres to produce 9 billion bushels of corn.
(b) Farmers transfer 40 million acres of land from corn to wheat production to produce 3.158 billion bushels of wheat and 10.107 billion bushels of corn.
(c) Farmers reduce production of wheat to 2 billion bushels and increase production of corn to 12.044 billion bushels.

Opportunity Cost

Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action.