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Figure: Strawberries and Submarines
-(Figure: Strawberries and Submarines) Look at the figure Strawberries and Submarines. As the economy moves from point A toward point D, it will find that the opportunity cost of each additional submarine:
A)falls.
B)rises.
C)remains unchanged.
D)doubles.

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Use the following to answer questions:
Figure: Strawberries and Submarines 
-(Figure: Strawberries and Submarines) Look at the figure Strawberries and Submarines. As the economy moves from point A toward point D, it will find that the opportunity cost of each additional submarine:
A)falls. 
B)rises. 
C)remains unchanged. 
D)doubles.

Quizplus · Accepted Answer

As the economy moves from point A towards point D, it will produce fewer strawberries and more submarines. This means that to produce each additional submarine, the economy will have to give up more and more strawberries. Therefore, the opportunity cost of each additional submarine will rise, indicating option B as the correct choice.

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