Question

Opportunity Cost is defined as whatever must be given up to obtain an item, i.e. using the resources it takes to produce one pound of good, how many units of another good could the person produce with the same resources. The table below shows two people, Mo and Nina, who both own farms. The farms are different size, 100 and 50 acres, and they choose how much of the acreage on their farms gets planted in two crops. If they want more of one good, they must take acreage out of production of the other good. This increases production of the good they desire and reduces production of the other good. Wheat Lbs. Grown Per Acre Farm Size Mo 100 acres Nina 50 acres Rice 126 24 48 If Mo wants one more pound of rice, she must take acreage out of wheat production and plant rice on that land instead. If Mo shifted acreage out of wheat production, the amount of wheat she grows would fall. If Mo shifted acreage into rice production, the amount of rice she grows would increase. If Mo increased rice production she is giving up wheat production. The opportunity cost of rice for Mo is how much wheat she would have to give up to increase rice production. The opportunity cost of rice for Mo is how much wheat she would have to give up for each extra unit of rice she produced

Answer 1

The perfect definition for opportunity cost according to the given case would be

The opportunity cost of rice for Mo is how much wheat she would have to give up for each extra unit of rice she produced.