Refer to the production possibilities frontier in Figure 2.1.3.The opportunity cost of moving from C to B will be
A)greater than moving from D to C but less than moving from B to A.
B)less than moving from D to C but greater than moving from B to A.
C)the same as moving from D to C or moving from B to A.
D)greater than moving either from D to C or from B to A.
E)less than moving from E to D.

Question

Quizplus · Accepted Answer

The opportunity cost of moving from C to B is greater than moving from D to C but less than moving from B to A, as typically the opportunity cost increases as you move along the production possibilities frontier.

Refer to the Production Possibilities Frontier in Figure 2