Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor.The table shows the number of hours of labor necessary to produce one sock or one shirt.
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier.What happens to the opportunity cost of producing shirts in Largetown if its labor resource decreases by 40 hours?
A.The opportunity cost of producing shirts increases.
B.The opportunity cost of producing shirts decreases.
C.The opportunity cost of producing shirts does not change.
D.The opportunity cost may or may not change depending upon the number of units of socks it wishes to produce.

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The Answer of Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor.The table shows the number of hours of labor necessary to produce one sock or one shirt.
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier.What happens to the opportunity cost of producing shirts in Largetown if its labor resource decreases by 40 hours?
A.The opportunity cost of producing shirts increases.
B.The opportunity cost of producing shirts decreases.
C.The opportunity cost of producing shirts does not change.
D.The opportunity cost may or may not change depending upon the number of units of socks it wishes to produce.