Question

Producer A’s opportunity cost would be

a. analyzing the climate to see which fruit would grow better. b. studying the profitability of growing apples versus oranges. c. researching what competitors are doing. d. choosing to grow both fruit varieties or only apples

Answer 1

the answer is B studying the profitability of growing apples versus oranges.

Explanation:

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Answer 2

The correct answer is B.

The opportunity cost is defined as the value of the best alternative rejected when making an economic decision. It is, therefore, the profit missed due to the rejection of such alternative. The alternative with the highest opportunity cost is the chosen one.

In the case presented, the choice between growing apples or oranges will be made based on the consideration of the opportunity cost.