Q. 115.0( 1 Vote )

Explain the conce

Answer :

Marginal opportunity cost is the rate at which the output of one product is to be sacrificed for the output increase of another product.

Example: Output of A=8, 5

The output of B=6, 7

Marginal opportunity cost=delta A/delta B

=8-6/7-5= 2/2=1

So there is a loss of 1 unit of A for one unit of B.

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