Question

A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced.

  

Draw the​ farm's

PPF.

Label it

PPF0.

  

The farm adopts a new technology which allows it to use fewer resources to

fatten chickensfatten chickens.

  

Draw a PPF that illustrates the impact of the new technology. Label it

PPF1.

  

With the new​ technology, the opportunity cost of producing

a chicken​ _____ because​ _____ soybeans must be forgone to produce a chicken.

A.

decreases​;

more

B.

does not​ change; the same number of

C.

increases​;

more

D.

decreases;

fewer

E.

increases​;

fewer

Answer 1