Pregunta
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On the diagram to the right, movement along the curve from points A to B to C illustrates A. constant marginal opportunity costs. B. decreasing marginal opportunity costs. C. increasing marginal opportunity costs. D. reflexive marginal opportunity costs.

Ask by Bowers Dawson. in the United States
Feb 03,2025

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The movement from points A to B to C on the curve illustrates **decreasing marginal opportunity costs**.

Solución

To determine the correct answer, we need to analyze the concept of marginal opportunity costs in the context of movement along a curve, typically represented in a production possibilities frontier (PPF) or similar diagram. 1. **Constant Marginal Opportunity Costs**: This occurs when the trade-off between two goods remains the same as you produce more of one good. The PPF would be a straight line. 2. **Decreasing Marginal Opportunity Costs**: This happens when the trade-off becomes less severe as you produce more of one good. The PPF would be bowed outward. 3. **Increasing Marginal Opportunity Costs**: This occurs when the trade-off becomes more severe as you produce more of one good. The PPF would be bowed inward. 4. **Reflexive Marginal Opportunity Costs**: This term is not standard in economics and does not have a defined meaning in this context. Now, if the movement from points A to B to C on the curve shows that as you increase the production of one good, you are giving up less and less of the other good, it indicates decreasing marginal opportunity costs. Conversely, if you are giving up more and more of the other good, it indicates increasing marginal opportunity costs. Without the diagram, I cannot definitively conclude which option is correct. However, if the curve is bowed outward, the answer would be **B. decreasing marginal opportunity costs**. If it is bowed inward, the answer would be **C. increasing marginal opportunity costs**. Please provide more context or details about the curve's shape or the nature of the movement from A to B to C for a more accurate answer.

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Bonus Knowledge

The movement along the curve from points A to B to C typically illustrates increasing marginal opportunity costs. This means that as you produce more of one good (moving from A to B), the cost in terms of the other good (moving from B to C) rises, indicating that resources are not perfectly adaptable. In the real world, understanding these concepts can help businesses make better production decisions. For instance, a company might realize that shifting resources from one product to another will cost them more as they divert limited resources, encouraging a balanced approach to product offerings instead of total focus on one.

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