Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.

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07-09-2022
Business

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Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-09-17T03:57:00-04:00

Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.

Opportunity costs are the possible advantages which any person or investor or any company forgoes while deciding between the two options.

Opportunity costs are invisible in nature. An opportunity cost is simply by definition is the difference between the expected returns of each option and this is also the formula for doing so.

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