Question

Why Marginal opportunity cost rises as the producer move downwards on PPC?

Answer 1

Explanation:

The basic idea is that anything that causes economic output to increase or decrease will shift this curve. ... When the curve shifts outward, or to the right, that means output is increasing. When the curve shifts inward, or to the left, that means output is decreasing.

Answer 2

The ‘PPC slopes downwards’ so that the production of ‘one good can be increased’ by substituting the resources from the ‘production of another good’.  

Explanation:

• It is the opportunity cost where the ‘output of one good’ is increased at the expense of the ‘second good’.

• The PPC is a curve that is used for showing the different production possibilities with the limited resources and the required technology.  

• It shows an ‘inverse relationship’ between the quantity of one good which is increased in relation to the quantity of the other good.