A country can use all its resources to produce Product A and Product B. If you know the

Question

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

You can determine the cost of Product B in terms of Product A by taking the reciprocal of the opportunity cost of producing Product A in terms of Product B. For example, if the opportunity cost of producing 1 unit of Product A is 3 units of Product B, then the cost of 1 unit of Product B would be 1/3 unit of Product A.