With the new technology, the opportunity cost of producing a chicken _ because _ soybeans must be forgone to produce

Question

Serhud [2]

2 years ago

11

With the new technology, the opportunity cost of producing a chicken _ because _ soybeans must be forgone to produce

a chicken.

Business

1 answer:

dexar [7] · Answer 1 · 2022-11-09T10:30:08+03:00

The full question is:

A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced.

The farm adopts a new technology which allows it to use fewer resources to produce soybean.

With the new technology, the opportunity cost of producing a chicken _____ because _____ soybeans must be forgone to produce a chicken.

Answer:

increases; more

Explanation:

Opportunity cost is the forgone alternative when a particular line of action is undertaken. For example in the given scenario more production of chicken will lead to loss of soyabean production and vice versa.

So when there is production of more chicken more opportunity cost is incurred because more of soyabean production is forgone in order to produce the chicken.

Economists consider opportunity cost seperately from the actual cost incurred in taking up a particular activity.

With the new​ technology, the opportunity cost of producing a chicken​ _____ because​ _____ soybeans must be forgone to produce

With the new technology, the opportunity cost of producing a chicken _ because _ soybeans must be forgone to produce