Maya farms a 40-acre farm. She can grow 30 bushels of corn per acre or 60 bushels of wheat per acre, and any combination in between. In bushels of wheat, what is Maya's opportunity cost of producing an additional bushel of corn?
2007-01-21 12:13:09 · 3 answers · asked by webelieve04 2 in Business & Finance ➔ Other - Business & Finance
Opportunity cost is the cost you pay for passing up an opportunity.
So, for example, if you had two friends who decided to go to different places at the same time, and they both invited you along, the cost of going with one would be that you couldn't go with the other. You can't be in two places at once! See?
In your example, a particular piece of dirt can only have corn growing out of it or wheat growing out of it. The two plants cannot occupy the exact same space. Since an acre can grow twice as much wheat as corn, you can say that every bushel of corn 'costs' you two bushels of wheat. Or every two bushels of wheat costs you a bushel of corn. It works boths ways.
Hope that helps!
2007-01-21 12:18:06 · answer #1 · answered by Doctor Why 7 · 0⤊ 0⤋
Two bushels of wheat
2007-01-21 20:19:47 · answer #2 · answered by Sterling403 2 · 0⤊ 0⤋
Who cares, do your own homework.
2007-01-21 20:18:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋