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
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.
Question : Marginal Rate of Transformation =
Question : Determine the marginal opportunity cost of 10 units of commodity X:
Question : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from the 10th unit.
Question : Statement 1: Marginal utility is the additional satisfaction derived from consuming one additional unit of a good.
Statement 2: The law of diminishing marginal utility states that as a consumer consumes more of a good, the additional satisfaction derived from each
Question : H, O and D were partners in a firm sharing profits and losses in the ratio of 2:2:1. The partners decide to share future profits and losses in the ratio of 3:2:1. Each partner’s gain or sacrifice due to change in ratio will be :
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