Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year.The figure shows that as more highways are built,the opportunity cost of building each additional highway is:

Question

Quizplus · Accepted Answer

According to the graph, as more highways are built, the opportunity cost of building each additional highway increases. This is represented by the bowed-out shape of the production possibilities curve, which indicates that resources are not equally efficient in producing both highways and medical care. As more resources are shifted towards highway production, the opportunity cost of producing each additional highway increases, and therefore the curve becomes steeper.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country