Question

. Marginal opportunity cost is increasing if:

A)

all inputs are equally adaptable to the production of all goods.

B)

the production possibility curve is a downward sloping straight line.

C)

all inputs are not equally adaptable to the production of all goods.

D)

each input can be used to produce more than one go

Answer 1

Option C is correct

For a production possibilities Frontier it is necessary that the marginal opportunity cost is increasing if the PPF is concave. Because then it shows that the resources are not equally is filled in the production of both the goods and increasing the production of one good will draw resources away from the other which means there will be an increase in the opportunity cost when resources are not equally skilled. However if resources are equally adaptable in the production of both the goods then the production possibilities curve becomes a downward sloping straight line with a constant marginal opportunity cost