Question

9. When output of Good-1 increases from 100 units to 110 units and output of Good-2 decreases from
400 units to 350 units, marginal opportunity cost = 50 units.
​

Answer 1

Question 1.)When output of Good-1 increases from 100 units to 110 units and output of Good-2 decreases from 400 units to 350 units, marginal opportunity cost = 50 units.

Añswers 1.) False . Marginal Opportunity Cost = 5. Because,

Marginal Opportunity Cost =∆ Good -2 (loss of output) / ∆ Good - 1 ( gain of output) [=50/10=5]

When some resources bare shifted from Good -2 to Good -1.

Answer 2

Answer:

Marginal opportunity cost = 5 units. Because, Marginal opportunity cost = Loss of output of Good - 2/Gain of output of Good - 1 when some resources are shifted from Good-2 to Good-1.