Define MOC. Explain the concept with a hypothetical numerical example.

Explanation

(i) Marginal oppor-tunity cost is an addition to a cost in terms of a number of units of a commodity sacrificed to produce one additional unit of another commodity.
(ii) Marginal opportunity cost can also be termed marginal rate of transformation, Marginal rate of transformation is the ratio of number of units of a good sacrificed to produce one additional unit of another commodity.
`MRT_(X,Y)=("Amount of good Y sacrificed")/("Amount of good X gained")=(DeltaY)/(DeltaX)`