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Multiple Choice Question:
The opportunity cost of $$100kg$$ of rice produced on a land which can also produce $$80$$ tonnes of wheat is _____________.


A
100kg of wheat
loader
B
80 tonnes of wheat
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C
8,000 tonnes of wheat
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D
none of these
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Solution

The correct option is C $$80$$ tonnes of wheat
Opportunity cost of production of a commodity refers to the resources which have to be sacrifice in terms of the next best alternative which could have been produced using the same resources.
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.

Economics

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