Since each of these farmers only has a fixed number of hours to spend harvesting

Since each of these farmers only has a fixed number of hours to spend harvesting

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Since each of these farmers only has a fixed number of hours to spend harvesting, each  hour spent harvesting pistachios cannot be spent harvesting soybeans, and similarly,  each hour spent harvesting soybeans cannot be spent harvesting pistachios. For every  hour Farmer Erica spends picking soybeans, she gives up 0.5 pounds of pistachios; and  for every hour that Farmer Erica spends picking pistachios, she gives up 0.1 pounds of  soybeans. Farmer Rick gives up 25 pounds of soybeans for every hour that he spends  harvesting pistachios, and for every hour that Farmer Rick spends harvesting soybeans,  he gives up 0.1 pounds of pistachios.  We can reexamine this example in terms of opportunity costs. Farmer Erica has an  opportunity cost of 0.1 pounds of soybeans for every 0.5 pounds of pistachios  harvested, or similarly, 5 pounds of pistachios for every 1 pound of soybeans harvested.

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This note was uploaded on 12/13/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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Since each of these farmers only has a fixed number of hours to spend harvesting

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