Use the Following Scenario to Answer the Next Ten Questions

Use the following scenario to answer the next ten questions:
Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year.
-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 cost
D) increase; all gains from trade have already been exploited
E) remain the same; Amy and Jim produce in constant ratios regardless of level of output