A farmer produces 100kg wheat on a piece of land with the help of a given quantity of
resources. If this farmer can also produce 70kg of rice with the same quantity of resources,
then what is the opportunity cost of producing wheat?
Dear student,
Opportunity cost simply refers to the cost of availing one opportunity in terms of loss of other opportunity.
So,in above case it is clear that the opportunity cost of producing 100kg of wheat is 70kg of rice which he has sacrificed to produce wheat.
Regards
Opportunity cost simply refers to the cost of availing one opportunity in terms of loss of other opportunity.
So,in above case it is clear that the opportunity cost of producing 100kg of wheat is 70kg of rice which he has sacrificed to produce wheat.
Regards