Use the following to answer question:
-(Scenario: Linear Production Possibility Frontier)Use Scenario: Linear Production Possibility Frontier.If Largetown's labor resource decreases by 40 hours,the opportunity cost of producing shirts:
A)increases.
B)decreases.
C)does not change.
D)may or may not change depending upon the number of pairs of socks it wishes to produce.

Question

Use the following to answer question: 
-(Scenario: Linear Production Possibility Frontier)Use Scenario: Linear Production Possibility Frontier.If Largetown's labor resource decreases by 40 hours,the opportunity cost of producing shirts:
A)increases. 
B)decreases. 
C)does not change. 
D)may or may not change depending upon the number of pairs of socks it wishes to produce.

Quizplus · Accepted Answer

The opportunity cost in a linear production possibility frontier remains constant regardless of the amount of resources, such as labor hours, because the slope of the line (representing the opportunity cost) does not change.

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