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melamori03 [73]
3 years ago
7

Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in

their ability to support orange trees. He can grow 30 orange trees on the best land, 20 orange trees on the ok land, and 10 orange trees on the bad land. If he initially has his land split between apples and oranges (1.5 acres growing apple trees and 1.5 acres growing orange trees), what would be the opportunity cost of growing another apple tree
Business
1 answer:
Alex17521 [72]3 years ago
7 0

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the  value of cost  what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples  on the 3 acres and 60 oranges at  on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

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