-Refer to Exhibit 34-5.The opportunity cost of one unit of good A is __________ for country 1 and __________ for country 2.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one unit of good A in each country is found by comparing the trade-offs between producing good A and good B. For country 1, the opportunity cost of producing one unit of good A is 1/2 unit of good B (since it can produce 20A or 10B, so 20A = 10B, or 1A = 1/2B). For country 2, the opportunity cost is 2 units of good B (since it can produce 15A or 30B, so 15A = 30B, or 1A = 2B).