Following Is the Production Possibilities Schedule for an Economy Producing

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Refer to Table 2.1. According to the production possibilities schedule, in the table above, which of the following statements is true?

A) Moving from choice 2 to choice 3, the opportunity cost of producing 20 more units of good B is 20 units of good A.
B) There are increasing opportunity costs associated with producing more units of good B.
C) Moving from choice 3 to choice 4, the opportunity cost of producing 20 more units of good B is 30 units of good A.
D) Moving from choice 1 to choice 2, the opportunity cost of producing 20 more units of good B is 10 units of good A.
E) All of these statements are true.

Correct Answer:

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