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Figure: Strawberries and Submarines
-(Figure: Strawberries and Submarines)Use Figure: Strawberries and Submarines.As the economy moves from point A toward point D,it can be find that the opportunity cost of each additional submarine:
A) falls.
B) rises.
C) remains unchanged.
D) doubles.

Question

Use the following to answer questions:
Figure: Strawberries and Submarines 
-(Figure: Strawberries and Submarines)Use Figure: Strawberries and Submarines.As the economy moves from point A toward point D,it can be find that the opportunity cost of each additional submarine:
A) falls. 
B) rises. 
C) remains unchanged. 
D) doubles.

Quizplus · Accepted Answer

Moving from point A to point D indicates an increase in the production of submarines and a decrease in the production of strawberries. This means resources are being diverted from strawberry production to submarine production, resulting in a higher opportunity cost of producing submarines. Therefore, the opportunity cost of each additional submarine rises as the economy moves from point A to point D.

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