Refer to the diagram below.This production possibilities curve is constructed such that:
A) resources are presumed to be perfectly shiftable between bread and tractors.
B) the opportunity cost of bread diminishes as more bread is produced.
C) the opportunity cost of tractors diminishes as more bread is produced.
D) the opportunity cost of both bread and tractors in terms of each other increases as more of each is produced.

Question

Refer to the diagram below.This production possibilities curve is constructed such that: 
A) resources are presumed to be perfectly shiftable between bread and tractors. 
B) the opportunity cost of bread diminishes as more bread is produced. 
C) the opportunity cost of tractors diminishes as more bread is produced. 
D) the opportunity cost of both bread and tractors in terms of each other increases as more of each is produced.

Quizplus · Accepted Answer

The Answer of Refer to the diagram below.This production possibilities curve is constructed such that: 
A) resources are presumed to be perfectly shiftable between bread and tractors. 
B) the opportunity cost of bread diminishes as more bread is produced. 
C) the opportunity cost of tractors diminishes as more bread is produced. 
D) the opportunity cost of both bread and tractors in terms of each other increases as more of each is produced.

Refer to the Diagram Below