The diagram illustrates the production possibility curve (PPC) of an economy. What happens to the opportunity cost of making additional consumer goods, measured in capital goods, as the economy moves down its PPC from point X to point Z?
- AIt will decrease continuously from point X to point Z.
- BIt will decrease up to point Y and then increase towards point Z.
- CIt will increase continuously from point X to point Z.
- DIt will increase up to point Y and then decrease towards point Z.