Exhibit 2-8 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | r | }
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\hline \text { Capital goods } & 15 & 14 & 12 & 9 & 5 & 0 \
\text { Consumer goods } & 0 & 2 & 4 & 6 & 8 & 10 \
\hline
\end{array}$$ As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:

Question

Exhibit 2-8 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | r | } 
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\hline \text { Capital goods } & 15 & 14 & 12 & 9 & 5 & 0 \
\text { Consumer goods } & 0 & 2 & 4 & 6 & 8 & 10 \
\hline
\end{array}$$ As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:

Quizplus · Accepted Answer

The concept of increasing opportunity costs is illustrated by the fact that as you move from producing more capital goods to producing more consumer goods (from A to F), you have to give up increasingly larger amounts of capital goods to produce each additional unit of consumer goods. This is evident from the decreasing numbers of capital goods as consumer goods increase, showing that the cost (in terms of capital goods forgone) increases as you produce more consumer goods.

Exhibit 2-8 Production Possibilities Curve Data As Shown in Exhibit 2-8, the Concept of Increasing Opportunity