Refer to the graph below Assume that the country is producin

Refer to the graph below. Assume that the country is producing at point C. Does this country\'s production possibilities curve exhibit increasing opportunity costs? Explain. If the country were to go to war, the most likely move would be from point C to which point? Explain. If the economy entered into a recession, the country would move from point C to which point? Explain.

Solution

oA) yes company\'s production curve decreases opportunity cost. It is due to the fact that quantity of goods decreases with quantity of social goods.

B) the point move to E from point C.

C) the point move from C to point D