anyone explain production possibilty curve and marginal rate opportunity
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Production possiblity curve is a curve which shows different combination of output of two goods. It is understood that resources has been fully utilised and Technology is constant.
PPC curve rotates rightward due to two basic assumption:-
1. Increase in resources.
2. Change in technology of both the goods & vice-versa.
Ppc curve rotates if there is change in technology of a single goods.
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MOC(Marginal opportunity cost) = MOC is the rate at which output in use1(goods y) is lost for every additional unit of output on use2(goods x).
Simply, It shows the loss of 1 output due to increase in additional unit of output
formula= MOC= LOSS OF OUTPUT/GAINS OF OUTPUT.
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