Differences in the _____ of resources in the production of various commodities explain the per-unit opportunity cost associated with a concave production possibility frontier.
A)cost
B)relative productivity
C)availability
D)supply elasticity

Question

Quizplus · Accepted Answer

The relative productivity of resources in the production of different commodities determines the opportunity cost associated with producing a unit of one commodity over another. If resources are relatively more productive in one activity than another, then the opportunity cost of producing that activity will be lower, and the production possibility frontier will be concave. Therefore, choice B - relative productivity is the best answer.

Differences in the _____ of Resources in the Production of Various