If good "A" is represented on the horizontal axis and good "B" on the vertical axis, then the steeper the production possibilities frontier at a given level of production of good "A," the
A)larger the opportunity cost of producing an extra unit of good "A."
B)larger the quantity of resources being devoted to the production of good "B."
C)smaller the quantity of resources being devoted to the production of good "A."
D)smaller the opportunity cost of producing an extra unit of good "A."
E)greater the returns to scale in the production of good "A."

Question

Quizplus · Accepted Answer

A steeper production possibilities frontier indicates that the opportunity cost of producing an extra unit of good "A" is higher, as more resources are required to shift production from good "B" to good "A."

If Good "A" Is Represented on the Horizontal Axis and Good