An economy has three types of resources: • Jungle can yield 21 maize or 3 cattle • Grassland can yield 100 maize or 10 cattle • Prairie can yield 21 maize or 7 cattle The opportunity cost of a head of cattle in jungle is The opportunity cost of a head of cattle in grassland is The opportunity cost of a head of cattle in prairie is

An economy has three types of resources: • Jungle can yield 21 maize or 3 cattle • Grassland can yield 100 maize or 10 cattle • Prairie can yield 21 maize or 7 cattle The opportunity cost of a head of cattle in jungle is The opportunity cost of a head of cattle in grassland is The opportunity cost of a head of cattle in prairie is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Opportunity Cost Analysis

Opportunity cost refers to the loss of potential benefits when choosing one alternative over another. It is the tradeoff a person makes, or the potential gains they miss out on, because of their choice. To analyze opportunity cost, we must consider the benefits and tradeoffs of each available option.

Question

An economy has three types of resources:
Jungle can yield 21 maize or 3 cattle
• Grassland can yield 100 maize or 10 cattle
• Prairie can yield 21 maize or 7 cattle
●
The opportunity cost of a head of cattle in jungle is
The opportunity cost of a head of cattle in grassland is
The opportunity cost of a head of cattle in prairie is

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