Refer to the accompanying figure. The opportunity cost of increasing medical care from 200 to 400 units is ________ the opportunity cost of increasing medical care from 400 to 600 units.
A)greater than
B)less than
C)exactly the same as
D)twice as much as

Question

Refer to the accompanying figure. The opportunity cost of increasing medical care from 200 to 400 units is ________ the opportunity cost of increasing medical care from 400 to 600 units. 
A)greater than 
B)less than 
C)exactly the same as 
D)twice as much as

Quizplus · Accepted Answer

The fact that the PPC is bow-shaped indicates increasing opportunity cost. Thus, as more units of medical care are provided, the opportunity cost of medical care increases.

Refer to the Accompanying Figure