When the opportunity cost of producing carrots increases as

When the opportunity cost of producing carrots increases as more carrots are produced then:

a. Prodution Possibilities curve shifts to the left

b. Prodution Possibilities curve shifts to the right

c. Production point is located inside and to the left of the production possibilities curve

d. Production point is located along the production possibilities curve

e. Production point is located outside and to the right of the production possibilities curve

Solution

The production points are located on the PPC.The opportunity cost of producing one commodity rises as we move along the PPC because along the PPC the marginal rate of transformation rises. So we have to give up more and more of a good to produce an additional unit of the other good. Answer-d