Table 3-1
Peanuts
Corn
(Bushels)
(Bushels)
0
55
10
50
20
42
30
28
40
0
?
Suppose a farmer is currently producing 50 bushels of corn and 10 bushels of peanuts. According to Table 3-1, the opportunity cost of 10 additional bushels of peanuts is
A. 8 bushels of corn.
B. 42 bushels of corn.
C. 50 bushels of corn.
D. impossible to determine from the information given.
Answer: A
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The larger is the marginal propensity to consume (MPC)
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