Refer to the information provided in Figure 2.3 below to answer the question(s) that follow. Figure 2.3
-Refer to Figure 2.3. Assume that this society's production possibility frontier is represented by Panel C. The opportunity cost of sailboats in terms of surfboards is
A) constant.
B) increasing.
C) decreasing.
D) infinite.

Question

Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.  Figure 2.3
-Refer to Figure 2.3. Assume that this society's production possibility frontier is represented by Panel C. The opportunity cost of sailboats in terms of surfboards is
A) constant. 
B) increasing. 
C) decreasing. 
D) infinite.

Quizplus · Accepted Answer

The opportunity cost of sailboats in terms of surfboards is constant because the production possibility frontier is a straight line. This means that the same amount of surfboards must be given up to produce an additional sailboat, regardless of the quantity of sailboats and surfboards that are already being produced.

Refer to the Information Provided in Figure 2