In using a tanks and trucks production possibilities curve with increasing opportunity cost,producing more and more tanks
A)Lowers the cost of each individual tank.
B)Can be done at a constant opportunity cost.
C)Requires us to give up larger and larger amounts of trucks per tank produced.
D)Is not possible due to scarcity.

Question

Quizplus · Accepted Answer

As we produce more and more tanks, the production of each additional tank requires giving up larger and larger amounts of trucks. This is because resources are not perfectly adaptable to producing both tanks and trucks and will vary in their effectiveness for each type of product, resulting in increasing opportunity cost. Therefore, the choice is C.

In Using a Tanks and Trucks Production Possibilities Curve with Increasing