Consider the production possibilities frontier in the figure shown.The opportunity cost of cars when moving from point B to point C:

Question

Quizplus · Accepted Answer

Moving from point B to point C involves increasing the production of cars and decreasing the production of computers. The opportunity cost of cars is the number of computers that must be given up to produce one more car. When moving from point B to point C, the opportunity cost of cars increases from 1 computer to 2 computers, which is greater than the opportunity cost of cars when moving from point A to point B (1/2 computer). Therefore, the correct answer is A.

Consider the Production Possibilities Frontier in the Figure Shown