Currently an Economy Is Producing at a Point on Its

question 131

Multiple Choice

Currently an economy is producing at a point on its production possibilities frontier for goods X and Y. It is producing 100 units of good X and the opportunity cost of producing 1X is 3Y. If good X is produced at increasing opportunity costs, then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1X could be ______Y.

• A)4
• B)2.5
• C)2
• D)1