A shale oil deposit is found beneath land currently used for farming. The estimates below are for a ten-year period. • If the land is kept for farming alone, it would generate income after tax of $10 billion. • If the land is used only for shale oil extraction, it would generate income after tax of $40 billion. • The government would collect $5 billion in taxes from farming and $10 billion in taxes from shale oil extraction. What opportunity cost arises if the land is used only for farming?
- A$25 billion
- B$30 billion
- C$35 billion
- D$45 billion