Answer:
Since the reduction in the tulip count is identical in both scenarios, the opportunity cost will also be the same as long as the marginal cost remains unchanged.
Explanation:
Opportunity cost represents the value forfeited when selecting an alternative option. For instance, if an ice cream costs $10, then the opportunity cost of choosing that ice cream is $10, as it implies the loss of enjoyment of an alternative bundle worth $10. Similarly, if I opt to attend a party after having already purchased $50 cinema tickets, the opportunity cost of choosing the party would be $50 while the cost of viewing the movie represents the loss of entertainment at the party.
If the opportunity cost of producing between 0 and 300 tulips is calculated at $5 per tulip, it is likely that the cost of producing between 600 to 900 tulips will also be set at $5 per tulip.
Thus, the opportunity cost for each scenario is as follows:
Case 1: 0-300 Tulips: 300 Tulips * $5 per Unit = $1500
Case 2: 600-900 Tulips: 300 Tulips * $5 per Unit = $1500
However, should the cost of producing the initial 300 units of tulips differ from those of the subsequent 300 units, there would consequently be a variation in opportunity cost.
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