Marginal Opportunity cost(MOC) / Marginal Rate of Transformation (MRT)

 1)

MOC is the rate at which output of Good-Y is to be sacrificed for every additional unit of Good-X. It refers to the slope of PPC.

The MOC measures the amount of a good that has to be sacrificed for each additional unit of the other good.

MOC = Δ Y (loss of output) / Δ X (gain of output) 


2)

 CASE 1) Thus if we want 1 burger we would have to sacrifice one house. Thus the marginal opportunity cost would be 1 pizza for an additional unit of Burger.

CASE 2) If we want 1 more burger then we would have to sacrifice 2 pizza's or 2 pizza's for an additional unit of burger.

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