Answer: The correct answers are "0,5" and "2".
Explanation: The opportunity cost of a unit of good B is "0,5" units of good A, while the opportunity cost of good A is "2" units of good B.
The opportunity cost is calculated by the division of what I sacrifice over what I produce, in this case the first line of good A and the last line of good B. therefore :
Opportunity cost to produce a unit of the good B = 20/40 = 0.5.
Opportunity cost to produce a unit of good A = 40/20 = 2.
Answer: The answers are 0.5 units of good B and 2 units of good A.
Explanation: Opportunity cost is the situation whereby an opportuinty of cost is foregone for another. This arises where there are options in production.
In determining the opportunity cost of both good A and good B, we check for the production that completely neglects the other. In this case, 20 of goods A can be produced when no goods B is produced while 40 goods B can be produced while goods A is completely neglected.
Therefore opportunity cost of goods B is 20/40 = 0.5 units of goods A.
While the opportunity cost of goods A is 40/20 = 2 units of goods B.
