Find marginal opportunity cost when shifting some resources from Use−1 to Use−2 causes a loss of output of 1,500 units in Use−1 and gain of output Rs.1,000 units in Use−2.
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Solution
Opportunity Cost refers to the cost of sacrifice of one benefit when using a good for an alternative purpose.
Marginal opportunity cost =△loss of output△gain of output=1,5001,000=1.5.