Question #47281

the ppc for country producing two good x and y giving by the formular y=100-20x assuming the is full employment from resourses, what is the opportunity cost of producing one extra unit of x.

Expert's answer

y=100-20x

The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.

The opportunity cost of producing one extra unit of x is: y' = (100 - 20x) = 20 units of y.

The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.

The opportunity cost of producing one extra unit of x is: y' = (100 - 20x) = 20 units of y.

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