Wednesday, February 24, 2010

Corn Cost Bushel What Is The Opportunity Cost, In Bushels Of Corn, Of An Additional Bushel Of Wheat In This Scenario?

What is the opportunity cost, in bushels of corn, of an additional bushel of wheat in this scenario? - corn cost bushel

Sat farms 400 hectares large farm. Two hundred hectares of land are particularly rich in a nutrient that is conducive to growing corn, but no advantage for wheat. Sam can take 30 bushels of corn and 25 bushels of wheat grown in each of these special acres. The remaining 200 acres are rich in nutrients, so Sam just 10 bushels of corn, or even 25 kilos of wheat per hectare to grow. Suppose that Sam is now growing wheat in the ground goes up to 7000 kilos of wheat to produce. What are the opportunity costs of bushels of corn, wheat, a bushel more?

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