A country can use all its resources to produce Product A and Product B If you know the opportunity cost of producing Product A in terms of Product B, how can you quickly determine the cost of Product B in terms of product A? Explain in one to two sentences, using an example (2 points)

Answer 1

To determine the cost of Product B in terms of Product A, you can simply take the inverse of the opportunity cost of producing Product A in terms of Product B. For example, if producing one unit of Product A costs two units of Product B, then producing one unit of Product B would cost 1/2 unit of Product A.