which situation is the best example of opportunity cost?\n\na country chooses to produce bananas instead of…

which situation is the best example of opportunity cost?\n\na country chooses to produce bananas instead of wheat.\na country chooses to invest in manufacturing and agriculture.\na country chooses to specialize in producing paper products.\na country chooses to export all of its products.

which situation is the best example of opportunity cost?\n\na country chooses to produce bananas instead of wheat.\na country chooses to invest in manufacturing and agriculture.\na country chooses to specialize in producing paper products.\na country chooses to export all of its products.

Answer

Brief Explanations:

Opportunity cost is the value of the next - best alternative forgone when a choice is made. In the option “A country chooses to produce bananas instead of wheat”, the country is giving up the production of wheat (the next - best alternative) to produce bananas. For the other options: investing in two areas (manufacturing and agriculture) doesn't involve forgoing one for the other; specializing in paper products doesn't clearly show a forgone alternative related to opportunity cost in the same way; and exporting all products is about trade, not about choosing between alternative productions.

Answer:

A. A country chooses to produce bananas instead of wheat.