explain the relationship between marginal opportunity cost and slope of PPC.
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MOC refers to the number of units of a commodity sacrificed for gaining an additional unit of another commodity. MOC, also known as MRT, indicates the slope of PPC.
In case of PPC, MOC always increases. Increasing MOC operates because resources are not equally efficient in the production of all commodities. When resources are shifted from production of one commodity to another, the productivity and efficiency decreases. Due increasing MOC, or MRT, PPC is concave shaped.
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In case of PPC, MOC always increases. Increasing MOC operates because resources are not equally efficient in the production of all commodities. When resources are shifted from production of one commodity to another, the productivity and efficiency decreases. Due increasing MOC, or MRT, PPC is concave shaped.
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