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erastova [34]
3 years ago
9

Last year Martha could grow 20 bushels of basil or 25 bushels of cilantro on each acre of land that she farmed. This spring, she

discovered a free organic fertilizer that allows her to double the amount of cilantro that she can grow on each acre, ceteris paribus. How has Martha's opportunity cost changed with this discovery______________________
Business
1 answer:
Lyrx [107]3 years ago
7 0

Answer:

Martha's opportunity cost of growing cilantro over basil has decreased by 50%

Explanation:

Last year Martha's opportunity cost of growing cilantro over basil was 20/25 = 0.8 bushels of basil per bushel of cilantro. Since her productions possibilities frontier of cilantro has doubled this year, her opportunity cost of growing cilantro over basil is 20/50 = 0.4 bushels of basil per bushel of cilantro.

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