Question

Difference between marginal and total opportunity cost

Answer 1

Well the difference between Marginal Opportunity Cost and Total Opportunity Cost is :

→ Marginal relates to the next unit while Total is the sum across all the units.

→ Marginal costs are visible while total opportunity costs are not.

→ Marginal cost always has a monetary value while total opportunity cost can have a monetary value or not.

→The term marginal cost refers to the opportunity cost associated with producing one more additional unit of a good. Opportunity cost is a critical concept to economics - it refers to the value of the highest value alternative opportunity.

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