Apply opportunity cost to decisions by identifying the chosen use, the next best alternative sacrificed and why limited resources prevent both options being pursued.
Washington State is the state which grows the most apples in the US. In 2019, apple production increased in Washington State but the market was in disequilibrium. Apple farming is a labour
intensive industry because apples are picked by hand. The market for apples in the US is competitive.
Explain opportunity cost and how it can influence a farmer's decision to grow apples.
Explain opportunity cost and how it can influence a farmer's decision to grow apples.
Logical explanation which might include:
Opportunity cost is the (next) best alternative / choice / option (1) sacrificed / forgone / given up (1).
A farmer could grow another crop (1) size of opportunity cost / choice made is influenced by revenue / cost / profit / resources available / weather (1).
4