-In the figure above, the marginal cost of the second computer is
A) 2 television sets per computer.
B) 3 television sets per computer.
C) 5 television sets per computer.
D) 30 television sets per computer.

Question

-In the figure above, the marginal cost of the second computer is
A) 2 television sets per computer. 
B) 3 television sets per computer. 
C) 5 television sets per computer. 
D) 30 television sets per computer.

Quizplus · Accepted Answer

The marginal cost of producing the second computer is the opportunity cost of producing that computer in terms of the other good, which is how many television sets must be given up to produce one more computer. From the first to the second computer, the production possibility frontier (PPF) typically shows a movement along the curve where more of one good is produced at the expense of producing less of the other good. The correct answer is determined by the slope of the PPF between the points representing the production of the first and second computers. Without the specific figure, a common principle in economics is that the marginal cost in terms of the other good increases due to the law of increasing opportunity costs. However, given the choices and assuming a typical PPF, the correct answer would be based on the specific details provided in a question scenario, which are not present here. Nonetheless, the principle remains that the marginal cost is the opportunity cost of producing one more unit of a good.

-In the Figure Above, the Marginal Cost of the Second