-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:
A) computers,but not bicycles,is subject to increasing opportunity costs.
B) bicycles,but not computers,is subject to increasing opportunity costs.
C) both bicycles and computers is subject to constant opportunity costs.
D) both bicycles and computers is subject to increasing opportunity costs.

Question

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:
A) computers,but not bicycles,is subject to increasing opportunity costs. 
B) bicycles,but not computers,is subject to increasing opportunity costs. 
C) both bicycles and computers is subject to constant opportunity costs. 
D) both bicycles and computers is subject to increasing opportunity costs.

Quizplus · Accepted Answer

The movement down the production possibilities curve from point A to point E indicates that as more of one good is produced, the opportunity cost of producing additional units of that good increases, which is characteristic of increasing opportunity costs for both goods.

-Refer to the Above Diagram