As we move along a bowed- out production possibility frontier, producing more tacos and less pizza, the opportunity cost of a pizza _ .
A) remains the same
B) increases and then decreases
C) decreases
D) increases

Question

Quizplus · Accepted Answer

As we move along a bowed-out production possibility frontier, the opportunity cost of a pizza decreases. This is because the slope of the production possibility frontier is decreasing, which means that it becomes less costly to produce additional units of pizza as we move along the frontier.

As We Move Along a Bowed- Out Production Possibility Frontier