A farmer has the ability to grow either corn or cotton or some combination of the two. Given no other information, it follows that the farmer’s opportunity cost of a bushel of corn multiplied by his opportunity cost of a bushel of cotton
a. is equal to 1.
b. is greater than 1 but less than 2.
c. is equal to 2.
d. Not enough information is given to make this determination.
Ans: a. is equal to 1.
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