The opportunity cost of a smartphone is the ratio of bikes forgone to smartphones gained. Similarly, the

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The opportunity cost of a smartphone is the ratio of bikes forgone to smartphones gained. Similarly, the opportunity cost of a bike is the ratio of smartphones forgone to bikes gained. So the opportunity cost of producing a bike is equal to the inverse of the opportunity cost of producing a smartphone. For example, moving along the PPF in Figure

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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