The Stinson Family owns a farm near Amarillo, Texas. Three alternatives exist for how to use the farm:

Alternative 1: Lease out the acres. The Stinson's neighbor, Harry, will pay $215 per acre for leasing, but the Stinson would still have expenses of $36 per acre (think taxes)

Alternative 2: Grow wheat. Wheat yield would be 60 bushels per acre.

The price of wheat is $7.35 per bushel and production expenses are

$26

per acre.

Alternative 3: Grow cotton. Cotton yield would be 800 pounds per acre.

The prices of cotton is $0.94 per pound and production expenses are $265 per acre.

Based on your calculations of net return per acre, which is the opportunity cost for the farm by choosing that alternative?

-$72/acre

-$415/acre

-$487/acre

-$179/acre