Question

If opportunity costs are analysed from Point A to Point F, they will be showing an ______________.

Situations	Cellphones(units)	Rice(quintals)
A	$0$	$60,000$
B	$1000$	$55,000$
C	$2000$	$48,000$
D	$3000$	$38,000$
E	$4000$	$23,000$
F	$5000$	$0$

• A. increasing trend
• B. decreasing trend
• C. constant change
• D. no change at all

Answer 1

Answer: (A)

increasing trend

In an economy, the following combinations of two goods can be produced with the available resources, and the given state of technology.
If opportunity costs are analyzed from Point A to Point F, they will be showing an increasing trend since, opportunity cost rises as we move from point A to point F on a production possibility curve.CONCEPT: Opportunity cost of production of a commodity refers to the cost which the producer has to sacrifice in terms of the next best alternative which could be produced out of that cost.