Based on the number of peacocks and turkeys that can be owned, the opportunity cost of one peacock is 20 turkeys.
What is opportunity cost?
- Refers to the benefit that we forego when we choose an alternative over another.
In this scenario, Susie can either have 100 turkeys or 5 peacocks. The opportunity cost of a single peacock would be:
Opportunity cost of peacock
= Number of turkey / Number of peacock
= 100 / 5
= 20 turkeys
In conclusion, opportunity cost of a single peacock is 20 turkeys.
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