Production possibilities
-The table above shows the production possibilities frontier for the economy of Sauria. As this economy increases its production of guns along the production possibilities frontier, the opportunity cost of guns

Question

Quizplus · Accepted Answer

As the economy of Sauria increases its production of guns along the production possibilities frontier, it will have to give up more and more units of butter to produce each additional unit of guns. This increasing opportunity cost means that the production possibilities frontier is bowed outwards from the origin and the opportunity cost of guns rises continuously. So, the correct answer is C.

Production Possibilities -The Table Above Shows the Production Possibilities Frontier for the for the Economy