Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the

Question

4 years ago

6

Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the

nation produces more missiles,
A. the more likely it is to satisfy all consumer wants.
B. the opportunity cost of consumer wants being satisfied will diminish.
C. every additional missile will reduce consumer goods production more and more.

Business

1 answer:

kotykmax [81] · Answer 1 · 2022-01-04T13:14:51+03:00

Answer:

C. every additional missile will reduce consumer goods production more and more.

Explanation:

As more missiles are being produced, there would be less resources available to produce consumer goods. So, the production of consumer goods would reduce.

The production possibility frontier explains this concept

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.