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22 September, 10:59

A farmer has the ability to grow either corn or cotton or some combination of the two. Given no other information, it follows that the farmer's opportunity cost of a bushel of corn multiplied by his opportunity cost of a bushel of cotton. a. is equal to 0.

b. is between 0 and 1.

c. is equal to 1.

d. is greater than 1.

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Answers (2)
  1. 22 September, 11:00
    0
    The correct answer is c. is equal to 1.
  2. 22 September, 11:04
    0
    C) is equal to 1.

    Explanation:

    The opportunity cost of growing a bushel of corn instead of cotton = cotton bushels / corn bushels

    The opportunity cost of growing a bushel of cotton instead of corn = corn bushels / cotton bushels

    if we multiply both opportunity costs, the answer will always be 1 = (cotton bushels / corn bushels) x (corn bushels / cotton bushels).

    i. e. a/b x b/a = 1 always
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