5 E 3 0 2 3 Good X millions per month As output moves from p

5 E 3 0 2 3 Good X (millions per month) As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X O A) Rises. The opportunity cost of one more unit of good Y falls O B) Rises. The opportunity cost of one more unit of good Y also rises O c) Falls. The opportunity cost of one more unit of good Y rises 0 D) Falls. The opportunity cost of one more unit of good Y also falls

Solution

the opportunity cost formula is = what you sacrifice/ what you gain.
we are taking in approximate term
at point a (x,y) (1.5,3.8)
at point b (3,3)
at point c (4,1.8)
so, the opportunity cost of X from a to b is = (3.8-3)/(3-1.5)
= 0.8/1.5
= 0.53
from b to c = (3-1.8)/(4-3)
= 1.2/1
= 1.2
thus the opportunity cost of X rises and the opportunity cost of Y falls