Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the fourth new highway built in a year is:

Question

Quizplus · Accepted Answer

As we move along the production possibilities curve and produce more highways, the opportunity cost of producing each additional highway increases. Therefore, the opportunity cost of the fourth new highway built in a year will be greater than the opportunity cost of the third new highway.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country