Question

Soal 13 Marginal cost is Select one:
a. zero at the efficient level of production.
b. the total opportunity cost of producing all the units of the good.
c. the same as the marginal benefit because producers benefit from the money they receive when they sell the good.
d. the opportunity cost of producing one more unit.

Answer 1

Answer - option(d) The opportunity cost of producing one more unit. Opportunity cost is the second best alternative with given resources in this sense marginal cost is equal to opportunity cost of producing one more unit because with that same resources you could produce one extra unit of that good. Thus the marginal cost of producing one more unit of any goods or services is the opportunity cost of producing one more unit of it.

DIAGRAM.

According to PPF the opportunity cost of producing combination A(1,4) is to produce combination B(2,3), thus the marginal cost of producing one more unit of good X with the same resource is the opportunity cost of producing combination B where to produce one extra unit of good X we have to sacrifice one unit of good Y.