Question

Draw PPC for an economy, if production possibilities are as under. Also find marginal opportunity cost.

Shirt (Millions)	$0$	$1$	$2$	$3$	$4$	$5$
Computer (Thousands)	$15$	$14$	$12$	$9$	$5$	$10$

Answer 1

Shirt (Millions)	Computer (Thousands)	Marginal Opportunity Cost
$0$	$15$	-
$1$	$14$	$\frac{1}{1}=1$
$2$	$12$	$\frac{2}{1}=2$
$3$	$9$	$\frac{3}{1}=3$
$4$	$5$	$\frac{4}{1}=4$
$5$	$0$	$\frac{5}{1}=5$