Answer to Question #161725 in Economics for Sudar

Question

Could someone do this worksheet, I don't understand.

https://drive.google.com/drive/folders/134PlwbS0smg687cnK5JxBb3OT74n9Qzw?usp=sharing

Answer 1

What choices do Australian farmers face? What to produce? Namely wheat or sheep.

What factors influence these choices? The means of production available to the farmer, as well as the natural and weather conditions in the region where his farm is located.

What is the opportunity cost of producing the first 2000 sheep? 760

What is the opportunity cost of grazing another 2000 sheep? 700

What has happened to the opportunity cost? Decreasing

What does this tell the farmer about his resource use? We must choose a more rational use of resources.

What is the opportunity cost of 400 tonnes of wheat? 8000

What is the opportunity cost of 760 tonnes of wheat? 2000