Suppose a country's workers can produce 4 watches per hour or 12 rings per hour. If there is no trade, the opportunity cost of 1 watch is

Question

Quizplus · Accepted Answer

The opportunity cost of producing 1 watch is the amount of rings that could have been produced instead. Since 1 hour can produce 4 watches or 12 rings, producing 1 watch means forgoing the production of 3 rings (12 rings/4 watches = 3 rings per watch).

Suppose a Country's Workers Can Produce 4 Watches Per Hour