The opportunity cost of 100 kg of rice produced on a land which can also produce 80 tonnes of wheat is:
Answers
Answer:
Therefore, the next best alternative which could be produced on the piece of land mentioned here is 80 tonnes of wheat, which is sacrificed for the production of 100 kg of rice.
ANSWER
Answer:
80 tonnes of wheat
Explanation :
80 tonnes of wheat
The worth of an element in its best possible alternative application is known as opportunity cost. As a result, it costs 80 tonnes of wheat to produce 100 kg of rice on land that can also yield 80 kg of wheat.
The resources that must be sacrificed in comparison to the next best option that might have been generated using the same resources are referred to as the opportunity cost of production of a commodity.
As a result, producing 80 tonnes of wheat instead of 100 kg of rice is the next best option that could be made on the area that is being discussed here.
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