Question

define marginal opportunity cost along a ppc?
rn

Answer 1

Heya.....

Marginal opportunity cost.....

It is the cost of gaining one more unit of good 2 when we r sacrificing good 1 for good 2.....

MOC along Production Possibility Curve...

It tends to decline and due to this PPC curve is concave to the origin....

And moc decline due to disturbance in the specialization of existing resources...

Answer 2

Marginal opportunity cost is the rate at which production of one good is to be sacrified in order to attain the production of another good. As we move along a PPC, MOC (marginal opportunity cost) tends to increase because resources are use specific, when resources are shifted from use 1 to use 2, loss of output from good 1 will always be more than gain of output from good 2.