-Refer to the above diagram.Starting at point E,the production of successive units of bread will cost: A) a constant 8 units of tractors. B) a constant 6 units of tractors. C) ¹/₈,¹/₆,¹/₄,and ¹/₂ units of tractors. D) ¹/₂,¹/₄,¹/₆,and ¹/₈ units of tractors.

Question

Quizplus · Accepted Answer

The cost of producing successive units of bread in terms of tractors increases as more bread is produced, starting from point E. The opportunity cost in terms of tractors is initially low and increases with each additional unit of bread produced.

-Refer to the Above Diagram