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-(Figure: Strawberries and Submarines)Use 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.

Question

Use the following to answer question:

-(Figure: Strawberries and Submarines)Use 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

Moving from point A to point D involves an increase in production of submarines and a decrease in production of strawberries. This means that more resources are being allocated towards submarine production, leading to a higher opportunity cost of producing each additional submarine. Therefore, the answer is B: the opportunity cost of each additional submarine rises.

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