Suppose a Gardener Produces Both Tomatoes and Squash in His

question 120

Multiple Choice

Suppose a gardener produces both tomatoes and squash in his garden.If the opportunity cost of one bushel of squash is 2/5 bushel of tomatoes,then the opportunity cost of 1 bushel of tomatoes is

• A)2/5 bushel of squash.
• B)5/2 bushels of squash.
• C)2 bushels of squash.
• D)5 bushels of squash.

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Definitions:

Implicit Costs

The opportunity costs that arise from using resources that could have been employed in an alternative capacity, but do not involve a direct monetary payment.

Entrepreneurial Talent

The skills, creativity, and initiative demonstrated by individuals in starting and managing new businesses, often driving innovation and economic growth.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Explicit Costs

Directly incurred expenses in the operation of a business, such as wages, rent, and materials.