Because resources are not perfectly adaptable to the production of both good A and good B,
A) the opportunity cost of A increases as production of A increases
B) the opportunity cost of A decreases as production of A increases
C) it is impossible for the economy to produce both A and B
D) the opportunity cost of A is constant
E) the opportunity cost of B is constant
Correct Answer:
Verified
Q132: A production possibilities frontier will be bowed
Q133: Exhibit 2-7 Q134: The concave shape of a production possibilities Q135: The bowed-out shape of the production possibilities Q136: Points inside the production possibilities frontier represent Q138: Any movement along the production possibilities frontier Q139: If the production possibilities curve is a Q140: The law of increasing opportunity cost explains Q141: The production possibilities frontier represents all desirable Q142: Exhibit 2-8 ![]()
A)full![]()
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