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Question

With the same amount of resources, a farmer can feed the following combinations of goats and horses:

GoatsHorses
Option I16844
Option II15050
Give the option available with him, what is the opportunity cost to the farmer of feeding one horse?

A
1 goat
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B
3 horses
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C
3 goats
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D
18 goats
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Solution

The correct option is C 3 goats
From the given combination of goats and horses, the opportunity cost to the farmer of feeding one horse :
1681505044=186=3
The opportunity cost to the farmer of feeding one horse is 3 goats.

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