For a country producing two goods, the opportunity cost of one good will be the inverse of the opportunity cost of the other good.

Question

Quizplus · Accepted Answer

In a two-good scenario, the opportunity cost of producing one good is the amount of the other good that must be forgone. Since this relationship is reciprocal, the opportunity cost of the second good is the inverse of the first, reflecting a trade-off between the two goods.

For a Country Producing Two Goods, the Opportunity Cost of One