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) SIMPLE TERMS PLS

Answer 1

To determine the cost of Product B in terms of Product A, you can use the opportunity cost ratio. For example, if the opportunity cost of producing 1 unit of Product A is 2 units of Product B, then the cost of Product B in terms of Product A is 0.5 units of Product A for 1 unit of Product B.