Question

3. A deposit of shale oil is discovered in an area of farming.
The following estimates are made for a ten-year period.
If the land is used only for farming it would yield Income after tax of $10 billion.
of the land is used only for shale oil extraction it would yield income after tax of
$40 billion
The government would receive $5 billion in taxes from farming and $10 billion in
taxes from shale oil extraction
What is the opportunity cost of using the land only for farming?
A
$25 billion B
$30 billion
C
$35 billion
D
$45 billion​

Answer 1

Answer:

hey dude your answer is

Explanation:

B

hope that it helps

Answer 2

Answer: C

Explanation: Calculate how much is given up from each option and add it all. 10 billion is will be obtained no matter which option is chosen, so minus 10 billion from option 2 (40 billion from shale oil extraction taxes), minus 10 billion from option 3 (5 billion from farming taxes and 10 billion from shale oil extraction taxes) and add both.

[(40 billion - 10 billion) + (15 billion - 10 billion)]

= 30 billion + 5 billion

= 35 billion