Question

A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 6 bushels of beans, then her opportunity cost of 1 bushel of beans is _______

(A) 0.38 bushels of corn
(B) 16.00 bushels of corn
(C) 2.67 bushels of corn
(D) 2.99 bushels of corn

Answer 1

C. 2.67 bushels of corn

Step-by-step explanation:

The opportunity cost is the cost of the best alternative not taken. In this case, if you choose to produce beans, you choose not to produce corn (this is the bets altenative not taken.. in this case the only one alternative).

For every 6 bushels of beans, you choose not to produce 16 bushels of corn, so:

6 bushels of beans= 16 bushels of corn

1 bushel of beans = (16 bushels of corn/6)

1 bushel of beans= 2.67 bushels of corn