When the amount of a commodity that must be given up to produce each additional unit of another commodity,regardless of the amount of the commodity foregone,is the same at every level of production,which of the following exists?
A)absolute advantage
B)comparative advantage
C)constant opportunity costs
D)increasing opportunity costs.

Question

Quizplus · Accepted Answer

Constant opportunity costs exist when the amount of a commodity that must be given up to produce each additional unit of another commodity remains the same at every level of production. This means that there is no advantage gained by producing one commodity over another, and therefore no comparative or absolute advantage. Increasing opportunity costs exist when the amount of a commodity foregone to produce an additional unit of another commodity increases as the production of the latter commodity increases.

When the Amount of a Commodity That Must Be Given