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
To determine the cost of Product B in terms of Product A, you can flip the opportunity cost of producing Product A to calculate how much of Product A is given up for each unit of Product B produced. For example, if producing one unit of Product A means giving up 2 units of Product B, then producing one unit of Product B costs 0.5 units 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. For example, if the opportunity cost of producing Product A is 2 units of Product B, then the cost of Product B in terms of Product A would be 1/2 unit.
