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Please answer a,b and c



in rice? A production possibility frontier A farmer can grow soybeans or corn. The farmer can grow 80 bushels of soybeans or 160 bushels of corn on each acre of land. The price of soybeans is $13.20 per bushel. The price of corn is $5.85 per bushel. a. Construct this farmers PPF for soybeans and corn in bushels, per acre . b. What is the opportunity cost (in dollars) per acre to grow soybeans? Corn? Which crop (pick only one) do you think the farmer will produce? Why? c.
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Answer #1

a ) Ans:

FarmersA PPF 80 160 CORN CbuheS) SOYREA NIs Cbusheh)

b ) Ans: The opportunity cost per acre to grow soybeans = $ 0.88 and corn = $1.12

Explanation:

Value of 80 bushels of soybeans = $ 13.20 * 80 = $1056

Value of 160 bushels of corn = $ 5.85 * 160 = $ 936

The opportunity cost per acre to grow soybeans = $936 / $1056 = $ 0.88

The opportunity cost per acre to grow corn = $1056/ $936 = $1.12

c ) Ans: The farmer will produce soybeans because the opportunity cost to grow soybeans is lower as compared to corn.

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