Question

With a graph

(Use the following table, which shows a farm's production possibilities, for Problems 8 and 9. Chicken Soybean bushels 500 (pounds pcr ycar) pcr ycar and 400 and 300 200 d 500 8. If the farm uses its resources efficiently, what is the opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year? Explain your answer 9, If the farm adopted a new chickens, explain how the farm's opportunity cost of producing a bushel of soybean will be affected which allows it to use fewer resources to fatten possibilities will change. Explain how the

Answer 1

The opportunity cost of  increasing the output of chicken from 300 pounds to 500 pounds is 200 bushels of Soybean . Why because only if we are sacrificing the soybean output then only we can increase the chicken output.Adoption of new technology bows out the graph from origin as the application of technology leads to increase in output with no change in resources employed for production.The opportunity cost of producing a bushel of soybean may or might not be affected as technological innovation always leads to optimum Utilization of resources.As more number of chicken would be raised with lesser consumption it leads to efficient utilization and contributes to the growth of business and economy as a whole.