Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates a production possibility curve for goods X and Y. Which combination is correct for the opportunity cost of producing more of good Y and for the opportunity cost of producing more of good X?

  • Aopportunity cost of producing more of good Y decreases; opportunity cost of producing more of good X decreases
  • Bopportunity cost of producing more of good Y decreases; opportunity cost of producing more of good X increases
  • Copportunity cost of producing more of good Y increases; opportunity cost of producing more of good X decreases
  • Dopportunity cost of producing more of good Y increases; opportunity cost of producing more of good X increases

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