Explore BrainMass

Explore BrainMass

    Opportunity cost

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 March 4, 2021, 8:02 pm ad1c9bdddf

    Solution Preview

    Opportunity cost is the price of the chosen good, relative to the next best alternative.
    Applicability in our case

    Country A
    Opportunity cost of ...

    Solution Summary

    Opportunity cost is emphasized.