The data in Table 2.1.1 illustrate that
A)the producer has a comparative advantage in the production of Y.
B)the producer has a comparative advantage in the production of X.
C)the opportunity cost of producing an additional unit of Y increases as the production of Y increases.
D)the opportunity cost of producing an additional unit of Y decreases as the production of Y increases.
E)the opportunity cost of producing an additional unit of Y is constant as the production of X increases.

Question

Quizplus · Accepted Answer

The increasing opportunity cost of producing an additional unit of Y as its production increases is a fundamental principle of economics, reflecting the law of increasing opportunity costs. This law states that as production of one good (Y) increases, the opportunity cost of producing an additional unit of that good increases, because resources are not equally efficient in producing all goods.

The Data in Table 2.1.1 Illustrate That