16 01 Farmer Brian has 3 acres of land which he farms effici

16 0/1 Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in their ability to support orange trees. He can grow 30 orange trees on the best land, 20 orange trees on the ok land, and 10 orange trees on the bad land. If he initially is using 2 acres to grow apples, what would be the opportunity cost of growing another apple tree? 1 orange tree 2 orange trees 3 orange trees 1/2 of an orange tree 1/3 of an orange tree 50 orange trees

Solution

Answer 1:

3 orange trees. This is because another acre if used to produce oranges can produce 30 oranges instead of 10 apples now. Thus, opportunity cost of producing apple = 3 orange tree.

Answer 2:

1 apple tree as all the land is being used.

Answer 3:

Option C. This is because slope is increasing as the PPF is concave shaped.

Answer 4:

Go to the movie and buy the popcorn as one will have to pay less than the total willingness tp pay. Thus, market answer is; correct.

Answer 5:

Somewhere between B and D as it respresents more of both the goods or atleast more of one and constant amount of another good.