The tabla shows soma of Brazil\'s production possibilities for ethanol and food
ID: 1135838 • Letter: T
Question
The tabla shows soma of Brazil's production possibilities for ethanol and food crops Complete the following statements Marginal cost of a good is O A. dapendent on a persan's preferencas for the good O B. the opportunity cost of producing one more unit of it Ethanol Food crops per dayl C. O D. the benefit received from consuming one more unit of it dacreasing as mare of a good is producad When the quantity of food produced is 1 5 tons a day, the marginal cost of producing a ton of food isbarrels of ethanolExplanation / Answer
The marginal cost of a good is the additional cost incurred in producing an additional unit of a commodity or good. It is the opportunity cost of producing one more unit of the good.
From the table, the additional unit of food crop requires 6 barrels per day of Ethanol to be given up. As the production of food crop increases by each unit, the opportunity cost also increases. When the quantity of food produced is 1.5 tons a day which is between one and two tons, the opportunity cost is 10 barrels for an additional unit so for 1.5 tons it will be 15 barrels per day.