I need help with opportunity cost (i'm sorry, I've only just started economics!). So this is the Production Possibitility Schedule:

Sheep - 10, 8, 6, 4, 2, 0
Wheat - 0, 400, 600, 700, 760, 800

What is the opp. cost of producing the first 2000 sheep?
What is the opp. cost of grazing another 2000 sheep?
What does this tell the farmer about his resource use?

Can someone please explain to me how to do it? :)

Question

I need help with opportunity cost  (i'm sorry, I've only just started economics!). So this is the Production Possibitility Schedule:

Sheep - 10, 8, 6, 4, 2, 0
Wheat - 0, 400, 600, 700, 760, 800

What is the opp. cost of producing the first 2000 sheep? 
What is the opp. cost of grazing another 2000 sheep?
What does this tell the farmer about his resource use?

Can someone please explain to me how to do it? :)

anonymous · Answer

Do you understand what opportunity cost means?

anonymous · Answer

Opportunity cost is what is given up in order to do something else. If I'm not mistaken, the opportunity cost of producing the sheep would be (x amount) of wheat. You would have to do the math in order to find out how much wheat you are giving up in order to produce (x amount) of sheep. I'm not sure if that makes sense or if it helps, but I hope it does!

anonymous · Answer

P.S. I think by producing 10 sheep at a time you lose 800 wheat. I think.

anonymous · Answer

@artsygall01 Sorry for the late reply, thank you so much for your help!

anonymous · Answer

Not a problem :) I just hope it helped