CONCEPTS OF MICROECONOMICS

Concepts of Microeconomics

Concepts of Microeconomics

Mary's Opportunity Cost for producing corn

The concept of opportunity cost states to the scenario when a person has two alternatives to choose from. The concept of opportunity cost incurs when the person's selection of a particular decision is followed by the denial to other alternate available. In case of Mary when she decides to grow corn she would have to let go the alternative of raising pigs. Hence, Mary's opportunity cost for producing corn will be 50pigs/year.

Mary's Opportunity Cost of raising pigs

Mary's opportunity cost for raising pigs would be 200 pounds of corn; because, if ...