What does increasing marginal opportunity cost along a PPC mean?
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ppc is production possibility curve or frontier which shows the combination of two goods which are produced with the given resources and technique of production . and MOC is called marginal opportunity cost it is the loss of output of good y when a unit more of good x is produced
increasing marginal cost will lead to increase in production so MOC is also increase
increasing marginal cost will lead to increase in production so MOC is also increase
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Why do technological advances of growth of resources shift the PPC to the right?
7. Why it is that on one hand coal is found in plenty, yet it is scarce while on the other a rotten vegetable is rare other but not scarce?
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Answer:
Marginal opportunity cost is the cost that is analysed on the basis of the additional units of the product of the cost of a business.
Explanation:
- The PPC means the production possibility frontier is a curve that shows the production of the two goods and the comparison to the other good and services. The impact of the slope of the PPF is defined by the rate and the order of the produce of the goods and services.
- The marginal opportunity cost is thus the cost of the commodity that is in the opportunity of X and in the terms of an opportunity of Y. Thus the shape of this curve is concave as the increase in the opportunity cost with an increase in the output of the good. Thus there is an increase in the absolute size along with the production etc.
- Thus the common example of the guns and the butter is one that shows the marginal opportunity cost of the curve.
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