My homework question says " what is the opportunity cost of good x in term of y, when production is shifted from point b to c along the pcc?"
For b the x axis is on 40 and the y axis is at 75.
So the opportunity cost will be 35
For c the x axis is 70 and the y axis is 50
So the opportunity cost will be 20
So do I combine them ?subtract them? or leave them as it is?
To determine the opportunity cost of good x in terms of y when production is shifted from point b to c along the production possibility curve (PCC), you should calculate the difference between the two opportunity costs.
In this case, the opportunity cost of good x at point b is 35, and the opportunity cost of good x at point c is 20. To find the change in opportunity cost, subtract the opportunity cost of c from the opportunity cost of b:
Change in Opportunity Cost = Opportunity Cost of b - Opportunity Cost of c
Substituting the values:
Change in Opportunity Cost = 35 - 20
Therefore, the change in opportunity cost is 15 units.