Asked by
Brynn Williams
on Nov 05, 2024
Verified
Refer to Figure 2.3. The law of ________ opportunity costs is best depicted by the production possibilities frontier in Panel A.
A) increasing
B) constant
C) decreasing
D) zero
Opportunity Costs
The cost of an alternative that must be forgone in order to pursue a certain action or decision.
Production Possibility
An economic model that shows the maximum combination of goods or services that can be produced with a given set of resources.
- Analyze the configuration of the Production Possibility Frontier (PPF) to determine what it reveals about the nature of opportunity costs (whether they are constant, increasing, or decreasing).
Verified Answer
AB
Learning Objectives
- Analyze the configuration of the Production Possibility Frontier (PPF) to determine what it reveals about the nature of opportunity costs (whether they are constant, increasing, or decreasing).