-Gabriel Operates a Ranch in Idaho Where He Raises Cattle

question 109

Multiple Choice

-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of raising another 100 cows?

• A) 1.25 tons of potatoes
• B) 5.0 tons of potatoes
• C) 3.0 tons of potatoes
• D) 1.0 ton of potatoes
• E) 100 cows

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Definitions:

Actual Delivery

The physical transfer of a security or commodity from seller to buyer, which finalizes the transaction process.

Result

The outcome or conclusion of a process, experiment, or event, often used to assess performance or effectiveness.

Percentage

A portion or share expressed as a fraction of 100.

Hedge

An investment strategy used to offset potential losses or gains that may be incurred by a companion investment.