If we move along a production possibilities curve and choose more of one type of good, the opportunity cost is measured in terms of the amount of the other good that is given up.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the trade-offs and opportunity costs of producing two goods. Moving along the curve to produce more of one good means less of the other can be produced, hence the opportunity cost is measured in terms of the amount of the other good given up.

If We Move Along a Production Possibilities Curve and Choose