If we consider the reality that each worker has different skills,then the production possibilities frontier
A) would display a constant opportunity cost of a good as more of that good is produced.
B) would display a decreasing opportunity cost of a good as more of that good is produced.
C) would display an increasing opportunity cost of a good as more of that good is produced.
D) cannot be drawn, as too many variables would need to be taken into consideration.

Question

Quizplus · Accepted Answer

If each worker has different skills, then the production possibilities frontier would display an increasing opportunity cost of a good as more of that good is produced. As production of a good increases, the workers with the most expertise in that area will be utilized first, and as more resources are allocated towards producing that good, workers with less experience and ability in producing that good will need to be utilized, resulting in a higher opportunity cost.

If We Consider the Reality That Each Worker Has Different