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Equation 2 fails - PowerPoint PPT Presentation

Eco 344----Slide 4

Eco 344----Slide 4. After Midterm Exam 3. Opportunity Cost (OC). OC of X in terms of Y is the amount of Y you have to give up when producing one unit of X OC is caused by the fact that resource (such as labor) is limited OC of X in term of Y is the inverse of OC of Y in terms of X.

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Equation 2 fails - PowerPoint PPT Presentation

Eco 344----Slide 4