If one orange costs 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?

Answer Details

The opportunity cost of something is the value of the next best alternative that must be given up in order to choose that thing. In this case, the opportunity cost of one kilogram of beef is the number of oranges that could have been purchased with the same amount of money that was spent on the beef. Given that one orange costs 20k, the cost of 50 oranges would be N10.00 (50 x 20k = N10.00), which is the same as the cost of one kilogram of beef. Therefore, the opportunity cost of one kilogram of beef is 50 oranges. To put it simply, if you spend N10.00 on one kilogram of beef, you could have bought 50 oranges with that same amount of money. So, the opportunity cost of one kilogram of beef is 50 oranges.