Exhibit 2-6 Production possibilities frontier data

-As shown in Exhibit 2-6,the concept of increasing opportunity costs is reflected in the fact that:

Question

Exhibit 2-6 Production possibilities frontier data
 
-As shown in Exhibit 2-6,the concept of increasing opportunity costs is reflected in the fact that:

Quizplus · Accepted Answer

Increasing opportunity costs means that in order to produce more of one good, more and more units of the other good must be forgone. In this case, producing an additional 2 units of consumer goods requires sacrificing an increasing amount of capital goods, which is reflected in the concave shape of the production possibilities frontier. This is consistent with choice C.

Exhibit 2-6 Production Possibilities Frontier Data