If the United States decides to convert automobile factories to tank production,as it did during World War II,but finds that some auto manufacturing facilities are not well suited to tank production,then
A)The production possibilities curve between tanks and automobiles will appear as a straight line.
B)The production possibilities curve between tanks and automobiles will shift outward.
C)Decreasing opportunity costs will occur with greater automobile production.
D)Increasing opportunity costs will occur with greater tank production.

Question

Quizplus · Accepted Answer

When some auto manufacturing facilities are not well suited to tank production, the opportunity cost of producing tanks in those factories will be higher than producing automobiles. Therefore, increasing tank production will lead to increasing opportunity costs, resulting in a bowed-out (concave) production possibilities curve.

If the United States Decides to Convert Automobile Factories to Tank