Let's say, country A and country B both consume and produce only food and clothing. Both countries use only labor to produce these two products. A worker in country A can produce 6 units of clothing or 10 units of food each day while a worker in country B can produce 4 units of clothing or 8 units of food.
Would opportunity cost of food production in country A/B be the same? Or would opportunity cost of food production in country A be greater than that of country B. What would be the formula...© BrainMass Inc. brainmass.com October 9, 2019, 8:07 pm ad1c9bdddf
Opportunity cost is the price of the chosen good, relative to the next best alternative.
Applicability in our case
Opportunity cost of ...
Opportunity cost is emphasized.