Economics · May / June 2021 · Paper 12 · Question 3

A farmer sells land used for crops to a firm that will use the land for wind turbines to produce electric power. What is the opportunity cost of this decision by the farmer?

1. Athe cost of installing wind turbines
2. Bthe loss of revenue from crops that grow on the land
3. Cthe profit made from selling the land
4. Dthe reduced cost of producing renewable energy

As printed in the paper