The opportunity cost of increased production of some good can be measured with
A)the slope of a ray to the production possibilities curve.
B)the area under the curve of a production possibilities curve.
C)the area of the rectangle bounded by the axes and the point on the production possibilities curve.
D)the slope of the production possibilities curve.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

The opportunity cost is measured by the slope of the production possibilities curve, which represents the rate at which the production of one good must be reduced to increase the production of another. The other options may be relevant to other aspects of the production possibilities curve, but they do not measure opportunity cost.

The Opportunity Cost of Increased Production of Some Good Can