With one unit of resources each, Country A can produce 12 schools or 4 hospitals and Country B can produce 12 schools or 6 hospitals.
-The opportunity costs to Country A and to Country B of producing one hospital each are:

Question

Quizplus · Accepted Answer

Country A's opportunity cost of producing one hospital is 3 schools (12 schools / 4 hospitals = 3 schools per hospital). Country B's opportunity cost of producing one hospital is 2 schools (12 schools / 6 hospitals = 2 schools per hospital).

With One Unit of Resources Each, Country a Can Produce