Question

Production Possibilities (alternative)

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

Given the date in Table, as one moves successively from point A to point B, C, D, E and F the opportunity cost of eggs:

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

Answer 1

The correct option is A Increases as more Eggs are produced.

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