Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour. The opportunity cost of 20 cameras in terms of computers in the United States is

Question

Quizplus · Accepted Answer

In the United States, producing 10 cameras costs 1 computer, so producing 20 cameras costs 2 computers.

Suppose That a Typical German Factory Can Produce 20 Cameras