Exhibit 2-15 Production Possibilities Curve

Exhibit 2-15 Production possibilities curve

In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

A) 40 fewer consumption goods because at point L, 20 capital goods and 40 consumption goods are produced.
B) 25 fewer consumption goods because at point M 30 capital goods and 25 consumption goods are produced.
C) 15 fewer consumption goods because to go from 20 capital goods to 30 capital goods, the economy must go from 40 consumption goods to 25 consumption goods.
D) 15 more consumption goods because to go from 30 capital goods to 20 capital goods, the economy must go from 25 consumption goods to 40 consumption goods.