Which statement best describes the opportunity cost evident in the production possibilities frontier (PPF) for the accompanying figure? 
A) The law of increasing relative cost applies because the PPF is a straight line.
B) The law of increasing relative cost applies because the PPF is bowed outward.
C) The opportunity cost is constant because the PPF is a straight line.
D) The opportunity cost is constant because the PPF is bowed outward.
E) The opportunity cost decreases because the line has negative slope.
Correct Answer:
Verified
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