Question

explain opportunity cost with the help of PPC
don't provide me the link give me written answer

Answer 1

Oppurtunity cost is defined as the cost of alternative opportunity given up or surrendered. MOC or Marginal Oppurtunity Cost of a good is given as ▲X/▲Y. The relationship between MOC and PPC is given below -

a) When MOC increases the shape of PPC is concave and is a downward slope
b) When MOC decreases PPC becomes convex to the origin.
c) When MOC is constant PPC is a straight line.