If a farmer can choose to produce wheat or corn, where wheat would yield $1000 and corn would yield $1200, what is the opportunity cost of choosing wheat?

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Multiple Choice

If a farmer can choose to produce wheat or corn, where wheat would yield $1000 and corn would yield $1200, what is the opportunity cost of choosing wheat?

Explanation:
Opportunity cost is the value of the next best alternative you give up when making a choice. Here, if you produce wheat you get 1000, but the next best option is producing corn, which would yield 1200. By choosing wheat, you forgo the extra 200 you could have earned from corn (1200 − 1000). So the opportunity cost of choosing wheat is 200.

Opportunity cost is the value of the next best alternative you give up when making a choice. Here, if you produce wheat you get 1000, but the next best option is producing corn, which would yield 1200. By choosing wheat, you forgo the extra 200 you could have earned from corn (1200 − 1000). So the opportunity cost of choosing wheat is 200.

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