I have a basic assignment including some tasks concerning opportunity costs. My textbook has taught me that "The opportunity cost of producing something measures the cost of not being able to produce something else with the resources used". I do however know nothing about reading arrows, Y and X like in task 1 in the picture. If there was a table listing the cost of producing say, computers in China and Bikes in Korea, I would be able to tell the opportunity cost of both, but I have no idea how to work with the arrows, X and Ys in this task. Could someone help me on my way?
What I do know is that
* = USA
Y = Good 1
X = Good 2
The rest I simply have no clue about.
Last edited: