A farmer has the choice to allocate his resources to produce either corn or wheat. Currently, he is at point A on his production possibilities curve, producing 50 bushels of corn and 30 bushels of wheat. If he decides to produce more corn, moving to point B where he produces 70 bushels of corn and 10 bushels of wheat, what is the opportunity cost of his decision to produce more corn?

The opportunity cost is what the farmer gives up when he decides to produce more of one crop instead of another. In this case, by moving from point A to point B, the farmer increases his corn production from 50 to 70 bushels, but at the same time, he reduces his wheat production from 30 to 10 bushels. This means the opportunity cost of producing an additional 20 bushels of corn is the 20 bushels of wheat he no longer produces. Therefore, the farmer must consider whether the extra corn is worth the loss of wheat. This example shows how important it is to weigh the benefits and costs of resource allocation in farming.