Consider the production possibilities frontier in the figure shown. As more and more cars are produced, the opportunity cost of producing more cars:

Question

Quizplus · Accepted Answer

As more and more cars are produced, the production of cars moves down the production possibilities frontier and the opportunity cost of producing more cars increases. This is because resources that are better suited for producing other goods, such as computers, are being used to produce cars. Therefore, the best choice is to produce at point B, which is the most efficient use of resources and maximizes production of both cars and computers.

Consider the Production Possibilities Frontier in the Figure Shown