FIGURE 1-5
-Refer to Figure 1-5.Which production possibilities boundaries exhibit decreasing opportunity costs?
A)boundary B only
B)boundaries A and C
C)boundaries A and B
D)boundary A only
E)boundary C only

Question

FIGURE 1-5
-Refer to Figure 1-5.Which production possibilities boundaries exhibit decreasing opportunity costs?
A)boundary B only 
B)boundaries A and C 
C)boundaries A and B 
D)boundary A only 
E)boundary C only

Quizplus · Accepted Answer

Boundary A only exhibits decreasing opportunity costs, as it is typically represented by a concave curve, indicating that as more of one good is produced, the opportunity cost of producing additional units decreases.

FIGURE 1-5 -Refer to Figure 1-5.Which Production Possibilities Boundaries Exhibit Decreasing Opportunity