Find marginal opportunity cost when shifting some resources from $U s e - 1$ to $U s e - 2$ causes a loss of output of $1, 500$ units in $U s e - 1$ and gain of output $R s . 1, 000$ units in $U s e - 2$ .

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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 $= \frac{△ loss of output}{△ gain of output} = \frac{1, 500}{1, 000} = 1.5$ .

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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.

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.

Find marginal opportunity cost when shifting some resources from $U s e - 1$ to $U s e - 2$ causes a loss of output of $1, 500$ units in $U s e - 1$ and gain of output $R s . 1, 000$ units in $U s e - 2$ .

Opportunity Cost refers to the cost of sacrifice of one benefit when using a good for an alternative purpose.
Marginal opportunity cost $= \frac{△ loss of output}{△ gain of output} = \frac{1, 500}{1, 000} = 1.5$ .