As we increase the production of computers, we find that we must give up larger and larger amounts of DVD players per computer.
A) This situation illustrates increasing opportunity cost.
B) As a result, we should specialize in the production of DVD players.
C) The production possibilities frontier for computers and DVD players is a straight line.
D) DVD players will be more highly regarded by consumers than computers.

Question

Quizplus · Accepted Answer

This situation exemplifies the concept of increasing opportunity cost, which states that producing more of one good will result in larger sacrifices of another good as resources that are not as well suited to the production of the first good are used.

As We Increase the Production of Computers, We Find That