Posted by Denise on .
If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportions some resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points,• What is Michelle’s opportunity cost of producing potatoes?
What is Michelle’s opportunity cost of producing chickens?
Opportunity cost is represented by what you're losing by choosing one option. For example, by going to the movies your opportunity cost is doing your homework. Therefore, the opportunity cost of producing potatoes is 50 chickens. The opportunity cost of producing chickens is 200 potatoes.
i don't get it
The university has built a new parking garage. There is always an availale parking spot,
but it costs $1 per ay. Before the new garage was built, it usually took 15 minutes of cruisint to
fina a parking space. Compare the opportunity cost of parking in the new garage witht that in the
old parkiing. Which is less costly and by how much?