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Suppose That One Unit of Labour Can Produce Either 5

question 26

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Suppose that one unit of labour can produce either 5 units of wool or 2 pineapples.What is the opportunity cost of producing 1 pineapple?


Definitions:

Workers

Individuals engaged in any form of employment, contributing labor for the production of goods or services.

Units

Basic quantities or measures adopted to quantify and measure variables.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit.

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