The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts. FIGURE 32-3
-Refer to Figure 32-3.Starting from point B and moving to point A,his opportunity cost of producing each additional kilogram of bananas is

Question

The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts.  FIGURE 32-3
-Refer to Figure 32-3.Starting from point B and moving to point A,his opportunity cost of producing each additional kilogram of bananas is

Quizplus · Accepted Answer

The opportunity cost is constant when moving from point B to point A, as it implies a linear trade-off between the two goods being considered, which is typical in a linear production possibilities frontier.

The Diagram Below Shows Robinson Crusoe's Annual Production Possibilities Boundary