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A farmer can earn Rs. 40,000 by producing indigo but he earns Rs. 30,000 by producing

         A farmer can earn Rs. 40,000 by producing indigo but he earns Rs. 30,000 by producing Wheat. What is the opportunity cost of producing Wheat? Why does he choose production of wheat?


         If an Economy is not able to utilise its available resources efficiently, what will be the effect on PPC? What will you suggest for economic growth?