Give one example of each opportunity cost & marginal opportunity cost when the question is of 1 mark

Opportunity cost is described as the amount of a good (say, capital good) sacrificed in order to produce another good (say, consumer goods). For instance, suppose that with the limited resources, the production of 10 consumer goods requires sacrificing the production of 10 capital goods. Then this will be the opportunity cost of producing consumer goods.

Marginal opportunity cost refers to the amount of a good sacrificed in order to produce a single additional unit of another good. For instance, if the production of 1 additional consumer good requires sacrificing the production of 3 capital goods. Then, this will be the marginal opportunity cost of producing a single additional unit of consumer good.

  • -2
What are you looking for?