When output of Good - $1$ increases from $100$ units to $110$ units and output of Good - $2$ decreases from $400$ units to $350$ units, marginal opportunity cost = $50$ units.

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B False
Marginal opportunity cost $= \frac{△ Loss of output of Good - 2}{△ Gain of output of Good - 1} = [\frac{50}{10} = 5]$

Marginal opportunity cost $= 5$ .

Suggest Corrections

Similar questions

Output of Good-X decreases by 400 units and output of Good-Y increases by 400 units, and some resources are shifted from the production of X to the production of Y, the marginal opportunity cost is

Q. Multiple Choice Question:

Output of Good-X decreases by

500

units and output of Good - Y increases by

500

units, when some resources are shifted from the production of X to the production of Y. The marginal opportunity cost is __________.

Q. Find marginal opportunity cost when shifting some resources from

U s e - 1

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

Q. Economic meaning of increasing marginal opportunity cost implies that to produce more units of good X, the units of the other good have to be sacrificed on an _________.

Q. When output increases from 10 units to 15 units and

T R

increases from Rs. 100 to Rs. 150 then, MR is Rs. 50. Is it true?

Join BYJU'S Learning Program

When output of Good - 1 increases from 100 units to 110 units and output of Good - 2 decreases from 400 units to 350 units, marginal opportunity cost = 50 units.

The correct option is B FalseMarginal opportunity cost =△Loss of output of Good - 2△Gain of output of Good - 1=[5010=5]Marginal opportunity cost =5.

When output of Good - $1$ increases from $100$ units to $110$ units and output of Good - $2$ decreases from $400$ units to $350$ units, marginal opportunity cost = $50$ units.

The correct option is B False
Marginal opportunity cost $= \frac{△ Loss of output of Good - 2}{△ Gain of output of Good - 1} = [\frac{50}{10} = 5]$

Marginal opportunity cost $= 5$ .