-Use the production possibilities described in Table 1.1, the cost of each additional film in terms of food:
A) remains constant.
B) falls as more films are produced.
C) increases as more films are produced.
D) is meaningless because the cost of films cannot be expressed in terms of food.

Question

-Use the production possibilities described in Table 1.1, the cost of each additional film in terms of food:
A) remains constant. 
B) falls as more films are produced. 
C) increases as more films are produced. 
D) is meaningless because the cost of films cannot be expressed in terms of food.

Quizplus · Accepted Answer

The cost of each additional film in terms of food increases due to the law of increasing opportunity costs, which states that as production of one good increases, the opportunity cost to produce an additional unit of this good increases because resources are not equally efficient in producing all goods.

-Use the Production Possibilities Described in Table 1