The concept of opportunity cost is illustrated by:

Question

Quizplus · Accepted Answer

The concept of opportunity cost relates to the tradeoff between producing one good over another, and is therefore illustrated by a movement along the production possibilities curve where more of one good can be produced only by reducing production of another good. This is represented by a movement on the curve, not a movement to the interior or the frontier, as implied by choices A and B. Choice C is also incorrect, as a movement to the northeast represents an increase in both goods produced, not a tradeoff.

The Concept of Opportunity Cost Is Illustrated By