If there were decreasing opportunity costs,then the slope of the production possibilities curve would be
A) increasing as one moves down the curve.
B) constant as one moves down the curve.
C) decreasing as one moves down the curve.
D) positive.
E) infinitE.

Question

Quizplus · Accepted Answer

The slope of the production possibilities curve represents the opportunity cost of producing one good in terms of the other. If the opportunity cost of producing a good decreases as more of it is produced, then the slope of the curve will get flatter (decrease) as we move down the curve. This is because as we produce more of one good, we have to give up fewer units of the other good to produce it. Therefore, the answer is C.

If There Were Decreasing Opportunity Costs,then the Slope of the Production