Production of Goods X (units) | Production of Good Y (units) |
0 | 15 |
1 | 14 |
2 | 12 |
3 | 9 |
4 | 5 |
5 | 0 |
Answer:
Marginal Opportunity Cost (MOC) = \[\frac{Loss\,\,of\,\,Output\,\,of\,\,Y\,\,(\Delta Y)}{Gain\,of\,\,Output\,\,of\,\,X\,\,(\Delta X)}\] Since, MOC is rising, therefore Production Possibility Curve (PPC) will be concave to origin. Production of Good X(units) Production of Good Y (units) Marginal Opportunity Cost (MOC) 0 15 \[-\] 1 14 \[\frac{1}{1}=1\] 2 12 \[\frac{2}{1}=2\] 3 9 \[\frac{3}{1}=3\] 4 5 \[\frac{4}{1}=4\] 5 0 \[\frac{5}{1}=5\]
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