Asked by
Harmandeep Kaur Cheema
on Dec 12, 2024
Verified
Land used to grow alfalfa could also be used to grow hay. Which of the following is true when the farmer plants hay and the market price of alfalfa rises?
A) The opportunity cost of producing hay decreases.
B) The opportunity cost of producing hay increases.
C) There will be no change in the opportunity cost of producing hay.
D) The opportunity cost of producing alfalfa increases.
Opportunity Cost
The result of losing potential upsides from other choices by committing to one.
Market Price
The current market price for purchasing or selling goods or services.
- Describe and assess opportunity costs in a range of economic scenarios.
Verified Answer
IZ
Learning Objectives
- Describe and assess opportunity costs in a range of economic scenarios.