Refer to Table 2.1.1.As the production of X increases,
A)the opportunity cost of each additional unit of X produced decreases.
B)the production of Y increases.
C)the opportunity cost of each additional unit of X produced increases.
D)unemployment increases.
E)the amount of X produced increases at an increasing rate.

Question

Quizplus · Accepted Answer

According to Table 2.1.1, as the production of X increases, the opportunity cost of each additional unit of X produced increases. This is because resources that are better suited to producing Y must be diverted to the production of X, leading to a greater loss of Y production for each additional unit of X produced. Therefore, choice C is the best answer.