Question

calculate the marginal opportunity cost of commodity X for the given combination commodityX0,1,2,3,4,5 commodityY 100,95,85,70,50,25

Answer 1

Answer:5,10,15,20,25

Explanation:We know that MOC=loss/gain. Here, loss is amount of one commodity decreased and gain in amount of other commodity increased

1. -

2. 5/1=5

3. 10/1=10

4. 15/1=15

5. 20/1=20

6. 25/1=25

Answer 2

Answer:

Here, the opportunity cost are 5,10,15,20,25.

Explanation:

The opportunity cost of a commodity can be defined as the value of next best alternative. It is the benefit given up by sacrificing the alternative commodity.

It can be calculated as the ratio of amount of  commodity given up by amount of commodity gained.

The opportunity costs here will be 5,10,15,20,25.