Question

Production Possibilities (alternative)

	A	B	C	D	E	F
Hot pockets	$15$	$12$	$9$	$6$	$2$	$0$
Eggs	$0$	$6$	$11$	$15$	$18$	$20$

Given the data in Table, as one moves successively from point A to points B, C, D, E and F the opportunity cost of Hot Pockets:

• A. Increases as more hot pockets are produced
• B. Decreases as more hot pockets are produced
• C. Remains constant as more hot pockets are produced
• D. Cannot be measured

Answer 1

The correct option is A Increases as more hot pockets are produced

As one moves successively from point A to points B, C, D, E and F, the opportunity cost of hot pockets increases as more hot pockets are produced.