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A small landscaping firm purchases a tractor that, in one day, is capable of drilling 60 fence-post ...

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A small landscaping firm purchases a tractor that, in one day, is capable of drilling 60 fence-post ...

A small landscaping firm purchases a tractor that, in one day, is capable of drilling 60 fence-post holes or removing 12 tree stumps (or some intermediate combination). For this landscaper, what is the opportunity cost of removing one extra tree stump?

▸ drilling 5 fence-post holes

▸ drilling 12 fence-post holes

▸ 1/12th of the cost of the tractor

▸ 1/5 of the cost of the tractor

▸ There is no opportunity cost.

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Microeconomics

Edition: 17^th

Author: Ragan

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