Suppose a Gardener Produces Both Green Beans and Corn in Her

question 73

Multiple Choice

Suppose a gardener produces both green beans and corn in her garden.If she must give up 15 bushels of corn to get 5 bushels of green beans,what is the opportunity cost of 1 bushel of green beans

• A)1/3 bushel of corn
• B)3 bushels of corn
• C)8 bushels of corn
• D)18 bushels of corn

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Definitions:

Total Cost Data

The sum of all costs associated with the production or delivery of goods and services.

Mixed Cost

A cost that contains both variable and fixed cost components, making it partly dependent on the level of output or activity.

High-low Method

A method utilized in cost accounting that predicts variable and fixed expenses by examining the most and least active periods.

Maintenance Cost

Expenses incurred to keep property, equipment, or machinery in efficient operating condition.