On a diagram of a production possibilities boundary,the concept of opportunity cost is illustrated by the
A)distance from the origin to the boundary.
B)negative slope of the boundary.
C)boundary being concave to the origin.
D)unattainable points outside the boundary.
E)area bounded by the two axes and the boundary.

Question

Quizplus · Accepted Answer

The negative slope of the production possibilities boundary illustrates the concept of opportunity cost, indicating that to produce more of one good, a certain amount of another good must be given up, reflecting the trade-offs and opportunity costs involved in production decisions.

On a Diagram of a Production Possibilities Boundary,the Concept of Opportunity