A country produces only cans of soup and ballpoint pens.If the country produces on its bowed outward PPF and increases the production of cans of soup,the opportunity cost of additional
A)cans of soup remains unchanged.
B)cans of soup is increasing.
C)cans of soup is decreasing.
D)ballpoint pens is increasing.
E)More information is needed to determine what happens to the opportunity cost.

Question

Quizplus · Accepted Answer

The opportunity cost of producing more cans of soup increases because the PPF is bowed outward, indicating increasing opportunity costs as more of one good is produced.

A Country Produces Only Cans of Soup and Ballpoint Pens