-The above figure illustrates Mary's production possibilities frontier. Which of the following movements show opportunity costs increasing?

Question

Quizplus · Accepted Answer

Moving from point a to point b to point c on a production possibilities frontier illustrates increasing opportunity costs because as production shifts from one good to another, more and more of the first good must be given up to produce each additional unit of the second good. This is due to resources not being equally efficient in producing all goods.

-The Above Figure Illustrates Mary's Production Possibilities Frontier