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)
To determine the cost of Product B in terms of Product A, you can take the reciprocal of the opportunity cost of Product A in terms of Product B. For example, if the opportunity cost of producing one unit of Product A is 2 units of Product B, then the cost of producing one unit of Product B is 1/2 of a unit of Product A.
To determine the cost of Product B in terms of Product A, you can calculate the reciprocal of the opportunity cost of producing Product A in terms of Product B. For example, if the opportunity cost of producing one unit of Product A is 3 units of Product B, then the cost of Product B in terms of Product A would be 1/3, meaning that it takes 1/3 unit of Product A to produce one unit of Product B.
To determine the cost of Product B in terms of Product A, you can take the reciprocal of the opportunity cost of Product A in terms of Product B. For example, if the opportunity cost of producing 1 unit of Product A is 2 units of Product B, then the cost of 1 unit of Product B in terms of Product A would be 1/2 units of Product A.
