ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the output of wheat
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the price of seed potatoes
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the profit from growing potatoes
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the time spent preparing the potato field
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Detailed explanation-1: -The opportunity cost of increasing output from 200 to 400 pounds of potatoes is 50 pounds of fish. If Atlantis increases output from 200 to 400 pounds of pota-toes, it has to cut fish production from 650 pounds to 600 pounds, that is, by 50 pounds.
Detailed explanation-2: -The opportunity cost of increasing output from 600 to 800 pounds of potatoes is 200 pounds of fish. If Atlantis increases output from 600 to 800 pounds of potatoes, it has to cut fish production from 500 pounds to 300 pounds, that is, by 200 pounds.
Detailed explanation-3: -In the United States, the opportunity cost of one unit of wheat is 1/5 unit of cloth.
Detailed explanation-4: -On the other hand, the opportunity cost of producing a unit of wheat in the U.S. is 1 unit of computers, while the opportunity cost of producing a unit of wheat in India is 0.5 units of computers.