Farmer X has 3 acres of land which she farms efficiently. Each acre can support 10 banana trees. However the 3 acres differ in their ability to support mango trees. She can grow 30 mango trees on the best land, 20 mango trees on the good land, and 10 mango trees on the bad land.

If she initially has her land split between bananas and mangoes (1.5 acres growing banana trees and 1.5 acres growing mango trees), what would be the opportunity cost of growing another banana tree?

Question

Farmer X has 3 acres of land which she farms efficiently. Each acre can support 10 banana trees. However the 3 acres differ in their ability to support mango trees. She can grow 30 mango trees on the best land, 20 mango trees on the good land, and 10 mango trees on the bad land.

If she initially has her land split between bananas and mangoes (1.5 acres growing banana trees and 1.5 acres growing mango trees), what would be the opportunity cost of growing another banana tree?

anonymous · Answer

It depends how the land is split.  Are both types of trees on all three types of land, or can we assume she used the best mango land and half of the middle land for mango trees, and the remainder for banana trees?