If this economy produces more than 20 houses per year,the opportunity cost of a house will ________ because ________.
A) decrease; production will be specialized
B) increase; an input with a higher opportunity cost must be used
C) decrease; inputs will be obtained at lower costs
D) increase; all gains from trade have already been exploited
E) remain the same; Amy and Jim produce in constant ratios regardless of the level of output
Correct Answer:
Verified
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