Figure 1.10
-Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in pizza when there is increasing opportunity cost.

Question

Figure 1.10 
-Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in pizza when there is increasing opportunity cost.

Quizplus · Accepted Answer

Figure B shows the Production Possibilities Frontier with increasing opportunity cost, meaning that in order to produce more pizza, more of the other good (in this case, soda) must be given up. This represents a scenario of specialized growth in pizza production, as the economy is becoming increasingly specialized in producing pizza. Figures A, C, and D all represent scenarios with constant opportunity cost, therefore they do not depict specialized growth in pizza production.

Figure 1.10 -Referring to the Production Possibilities Frontiers in Figure 1.10 A