Question

What is the opportunity cost in daffodils to go from 0 tulips to 300 tulips? How does this opportunity compare with the opportunity cost of going from 600 to 900 tulips?

Answer 1

Answer:

The decreased quantity of daffodils and the opportunity cost will be the same.

Explanation:

The opportunity cost is the cost that has foregone in order to acquire the other. For example, a person has the option to study or to work. If the person chooses to study then the opportunity cost of the study is the salary. Similarly, the opportunity cost of tulips to go from 0 to 300 tulips is the number of daffodils by which daffodil decreases. While the opportunity cost of going from 600 tulips to 900 tulips will be the same because the increase in tulips in both cases is the same that is 300.