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Question
An economy has 2 alternatives of production from the available resources: (i) 20X + 1Y; or (ii) 18X + 2Y. If the economy chooses the second alternative, then what is the MOC of producing Y?
Options
1X
2X
1Y
None of these
MCQ
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Solution
2X
Explanation:
Moving from 20X + 1Y to 18X + 2Y sacrifices 2X to gain 1Y.
`MOC = (20-18)/(2-1)`
= 2X
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