which situation is the best example of opportunity cost?\no a country chooses to produce bananas instead of…
which situation is the best example of opportunity cost?\no a country chooses to produce bananas instead of wheat.\no a country chooses to invest in manufacturing and agriculture.\no a country chooses to specialize in producing paper products.\no a country chooses to export all of its products.
Answer
Brief Explanations:
Opportunity cost is the value of the next - best alternative forgone. When a country chooses to produce bananas instead of wheat, the wheat that could have been produced is the opportunity cost. In the other options, there is no clear indication of a single alternative being given up. For example, investing in both manufacturing and agriculture doesn't show a trade - off as clearly as choosing one crop over another. Specializing in paper products doesn't clearly define the alternative forgone, and exporting all products doesn't imply a specific alternative that is not chosen.
Answer:
A. A country chooses to produce bananas instead of wheat.