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olya-2409 [2.1K]
3 years ago
15

What does increasing marginal opportunity costs​ mean? A. Increasing the production of a good requires smaller and smaller decre

ases in the production of another good. B. Increasing the production of a good requires larger and larger decreases in the production of another good. C. The economy is unable to produce increasing quantities of goods and services. D. Production is not occurring on the production possibilities frontier. E. Increasing the production of a good requires decreases in the production of another good. What are the implications of this idea for the shape of the production possibilities​ frontier? A. The production possibilities frontier will be a straight line. B. The production possibilities frontier will have a positive slope. C. The production possibilities frontier will be bowed outward. D. The production possibilities frontier will have a negative slope. E. The production possibilities frontier will be bowed inward.
Business
1 answer:
lilavasa [31]3 years ago
4 0

Answer:

B. Increasing the production of a good requires larger and larger decreases in the production of another good.

Explanation:

Opportunity cost refers to the foregone units of production of a good in exchange for producing units of another good.

Marginal cost on the other hand refers to additional cost incurred when an additional unit is produced.

Marginal opportunity cost relates to the additional opportunity cost incurred  when additional unit of second good is produced in exchange for foregoing or sacrificing units of production of first good.

Increasing marginal opportunity cost would mean as more and more units of good A are produced, for each extra unit of production of Good A, higher units of production of Good B are sacrificed i.e larger and larger decrease in the production of another good.

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