Answer to Question #230059 in Microeconomics for Wenzy

Question

What is opportunity cost of producing 80kg of tomatoes

Answer 1

Opportunity cost refers to the given up benefits to obtain some other benefits.

The opportunity is determined on the basis of expected marginal benefit and marginal cost. It helps the firms or an individual to make decisions in order to achieve profit or benefit. The opportunity cost of  producing 80kg of tomatoes is the given up units of producing other goods and services.