Exhibit 2-6 Production possibilities curve data In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:

Question

Exhibit 2-6  Production possibilities curve data  In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:

Quizplus · Accepted Answer

Increasing opportunity costs means that in order to produce more of one good, increasingly larger amounts of another good must be sacrificed. This is represented in the production possibilities curve by the fact that as we move along the curve from left to right, the slope becomes steeper indicating that greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. Option A and D are incorrect as they do not represent the concept of increasing opportunity costs. Option B is partially correct but does not fully capture the concept of increasing opportunity costs.

Exhibit 2-6 Production Possibilities Curve Data in Exhibit 2-6, the Concept