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If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?
- a)25 tonnes of steel
- b)30 tonnes of steel
- c)5 tonnes of steel
- d)1 ton of steel
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If an economy was producing 10 billion tonnes of steel and 3 billion t...
Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Stated differently, an opportunity cost represents an alternative given up when a decision is made. This cost is, therefore, most relevant for two mutually exclusive events.
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If an economy was producing 10 billion tonnes of steel and 3 billion t...
To determine the opportunity cost of producing wheat, we need to compare the production levels of steel and wheat in the two scenarios given.
Initial Production Levels:
- Steel: 10 billion tonnes
- Wheat: 3 billion tonnes
New Production Levels:
- Steel: 15 billion tonnes
- Wheat: 2 billion tonnes
Opportunity Cost Calculation:
The opportunity cost is the value of the next best alternative foregone when making a choice. In this case, we are calculating the opportunity cost of producing wheat, so we need to determine how much steel would have been produced instead.
To find the opportunity cost, we need to calculate the difference in steel production between the two scenarios:
Steel Production Difference:
= New Steel Production - Initial Steel Production
= 15 billion tonnes - 10 billion tonnes
= 5 billion tonnes
Therefore, the opportunity cost of producing wheat is 5 billion tonnes of steel.
Answer:
c) 5 tonnes of steel
Initial Production Levels:
- Steel: 10 billion tonnes
- Wheat: 3 billion tonnes
New Production Levels:
- Steel: 15 billion tonnes
- Wheat: 2 billion tonnes
Opportunity Cost Calculation:
The opportunity cost is the value of the next best alternative foregone when making a choice. In this case, we are calculating the opportunity cost of producing wheat, so we need to determine how much steel would have been produced instead.
To find the opportunity cost, we need to calculate the difference in steel production between the two scenarios:
Steel Production Difference:
= New Steel Production - Initial Steel Production
= 15 billion tonnes - 10 billion tonnes
= 5 billion tonnes
Therefore, the opportunity cost of producing wheat is 5 billion tonnes of steel.
Answer:
c) 5 tonnes of steel
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If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer?.
If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?a) 25 tonnes of steelb) 30 tonnes of steelc) 5 tonnes of steeld) 1 ton of steelCorrect answer is option 'C'. Can you explain this answer?.
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