-Figure 2-5 shows five different combinations of rockets and cruise ships that a country could manufacture.The production possibilities frontier that is illustrated in Figure 2-5 exhibits

Question

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The production possibilities frontier (PPF) typically exhibits increasing opportunity cost because resources are not perfectly adaptable to the production of both goods. As more of one good is produced, increasingly more resources must be reallocated from the production of the other good, leading to higher opportunity costs.

-Figure 2-5 Shows Five Different Combinations of Rockets and Cruise