Abe starts exercising regularly,and after a few months he can do twice as much of everything.In a single day,Abe can now make 10 hamburgers or 8 milkshakes,rather than the 5 hamburgers and 4 milkshakes he made in the past.We now know that Abe's production possibility frontier has _____,but his opportunity costs of making milkshakes have _____.
A)shifted right;not changed
B)shifted right;decreased
C)not changed;increased
D)not changed;decreased

Question

Quizplus · Accepted Answer

Abe's production possibility frontier has shifted right because he is now able to produce more of both hamburgers and milkshakes. However, his opportunity cost of making milkshakes has not changed because he still has to give up the same amount of hamburgers in order to make each milkshake.

Abe Starts Exercising Regularly,and After a Few Months He Can