Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier,the opportunity cost of producing more of the good on the horizontal axis
A) increases.
B) decreases.
C) is constant.
D) is 0.
E) is infinite.

Question

Quizplus · Accepted Answer

When moving from a point inside the production possibilities frontier to a point on the frontier, resources are being used more efficiently, and there is no opportunity cost because previously underutilized resources are now being fully utilized.

Moving from a Point Inside the Production Possibilities Frontier to a Point