The relative price of two goods (units of A per unit of B) is the same as the opportunity cost of producing good B.

Name: The relative price of two goods (units of A per unit of B) is the same as the opportunity cost of producing good B.
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Question

Quizplus · Accepted Answer

This is the definition of relative price or exchange rate, which reflects the ratio of the opportunity cost of producing one good in terms of the other.

The Relative Price of Two Goods (Units of a Per