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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**.

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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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