A farmer can produce 1000 quintals of sugar on a plot of land. With same resources, he can also produce 800 quintals of rice. What is the opportunity cost of producing sugar?

A farmer can produce 1000 quintals of sugar on a plot of land. With sa

1.	A farmer can produce 1000 quintals of sugar on a plot of land. With same resources, he can also produce 800 quintals of rice. What is the opportunity cost of producing sugar?
Answer» Solution :A farmer produces 1000 quintals sugar on a plot of land. With same RESOURCES, the next best alternatives use of plot of land is to grow rice, which produces 800 quintals of rice. HENCE, OPPORTUNITY cost of PRODUCING sugar is 800 quintals of rice.