Question

Monday Island produces only potatoes and oranges. Complete the following sentence. The marginal cost of a potato is the number of oranges that​ ______ to get one more​ ______.
A. must be​ forgone; potato
B. must be​ forgone; orange
C. people are willing to​ forgo; potato
D. people are willing to​ forgo; orange

Answer 1

Answer:

Option (A) is correct.

Explanation:

The marginal cost is also defined as the opportunity cost.

Opportunity cost refers to the value or quantity of one good that must be foregone to produce one extra unit of other good. Here, the opportunity cost of producing potatoes is the number of oranges.

If Monday Island wants to increase the production of potatoes then it must sacrifices some of the units of oranges.