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. IN 4 SENTENCES

Answer 1

To determine the cost of Product B in terms of Product A, you simply need to take the inverse of the opportunity cost of producing Product A in terms of Product B. For example, if an economy can produce either 20 units of Product A or 10 units of Product B, the opportunity cost of one unit of Product A is 0.5 units of Product B. Therefore, the cost of one unit of Product B in terms of Product A would be 2 units of Product A.