Question : Why Marginal Opportunity Cost (MOC) is increasing?
Option 1: More and more units of a commodity is sacrificed to gain an additional unit
Option 2: Less and less units of a commodity is sacrificed to gain an additional unit
Option 3: More and more units of a commodity is gained to sacrifice an additional unit
Option 4: Both 2 and 3
Answer (1)
21st Jan, 2024
Correct Answer: More and more units of a commodity is sacrificed to gain an additional unit
Solution : Because more and more units of a commodity are being given up in order to obtain a single additional gain unit, the marginal opportunity cost (MOC) is rising. Hence, the correct option is 1.
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