A country produces only cans of soup and ballpoint pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

Question

Quizplus · Accepted Answer

When a country produces more cans of soup, it moves along the PPF towards the vertical axis, meaning it is producing fewer ballpoint pens. The opportunity cost of additional cans of soup in terms of ballpoint pens increases because more and more ballpoint pens must be given up to produce each additional can of soup. Therefore, the correct choice is C.

A Country Produces Only Cans of Soup and Ballpoint Pens