A Small Landscaping Firm Purchases a Tractor That,in One Day,is

question 8

Multiple Choice

A small landscaping firm purchases a tractor that,in one day,is capable of drilling 60 fence-post holes or removing 12 tree stumps (or some intermediate combination) .For this landscaper,what is the opportunity cost of removing one extra tree stump?

• A)1/12th of the cost of the tractor
• B)1/5 of the cost of the tractor
• C)drilling 12 fence-post holes
• D)drilling 5 fence-post holes
• E)There is no opportunity cost.

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