A farmer can plant corn or squash, but not both. What is the opportunity cost if the farmer plants squash? A) the cost of the corn seeds B) the value of the corn crop C) the cost of the squash seeds D) the value of the squash crop

B) the value of the corn crop

Explanation:

Opportunity cost refers to the value of the sacrifice of what has to be given up in order to select something else. It also refers to what must be sacrificed or given up in order to acquire what we desire.

Economists refer to the opportunity cost of a resource as the value of the next highest valued alternative.

The farmer planted squash which means the opportunity cost will be THE VALUE of the corn crop and not the cost of the corn seeds.

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