Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The profit from selling corn
B
The profit he could have made from soybeans
C
The cost of seeds for both crops
D
The time spent planting the crops
Understanding the Answer
Let's break down why this is correct
Answer
The opportunity cost in this scenario refers to what the farmer gives up when he chooses to plant corn instead of soybeans. If he plants corn, he misses out on the profits he could have earned from soybeans. For example, if planting corn could earn him $1,000, but soybeans would have brought in $1,500, the opportunity cost of choosing corn is $1,500. This concept highlights the importance of considering not just the immediate benefits of a decision, but also what is sacrificed by not choosing the alternative option. Understanding opportunity cost helps farmers and others make better choices by weighing the full impact of their decisions.
Detailed Explanation
The opportunity cost is what the farmer gives up. Other options are incorrect because This option confuses profit from corn with opportunity cost; This option talks about the cost of seeds.
Key Concepts
Opportunity Cost
Trade-offs in decision making
Resource allocation
Topic
Opportunity Cost Analysis
Difficulty
medium level question
Cognitive Level
understand
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