A farmer has a piece of land on which he can grow maize, cabbages and beans. The expected yields and selling prices of the three crops are shown below. If the cost of producing any of the three crops is the same (a) Which crop should the farmer grow? Show your working. (2 marks) (b) (i) State the farmer’s opportunity cost. ( l mark) (ii) Give a reason for your answer in (b) (i) above. (1 mark) cc» Give a reason why farmers always have to make a choice on the enterprise to implement on the farm. (1 mark)

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A farmer has a piece of land on which he can grow maize, cabbages and beans. The expected yields and selling prices of the three crops are shown below.

 

If the cost of producing any of the three crops is the same

(a) Which crop should the farmer grow? Show your working.

(b) (i) State the farmer’s opportunity cost.

(ii) Give a reason for your answer in (b) (i) above.

cc» Give a reason why farmers always have to make a choice on the enterprise to implement on the farm.

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