Question

If the production of good x rises by 1 unit and that of good Y falls from 15 to 12.5 units, then 1

marginal opportunity cost of X is : (Choose the correct alternative)

A. 27.5 C. 2.5

B. 15 D. 12.5​

Answer 1

Answer:

27.5 c. 2.5 is the marginal opportunity cost of x

Answer 2

Answer:

Option C: 2.5

Explanation:

We know that the production of Good X rises to 1 unit.

Production of Good Y falls from 15 to 12.5. The difference between 15 and 12.5 is 2.5

In other words, Gain of output is 1 and loss of output is 2.5

Marginal Opportunity Cost= Loss of Output/Gain of Output

∴MOC= 2.5/1

Marginal Opportunity Cost= 2.5