Essay
Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor.The table shows the number of hours of labor necessary to produce one sock or one shirt.
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier.What happens to the opportunity cost of producing shirts in Largetown if its labor resource decreases by 40 hours?
A.The opportunity cost of producing shirts increases.
B.The opportunity cost of producing shirts decreases.
C.The opportunity cost of producing shirts does not change.
D.The opportunity cost may or may not change depending upon the number of units of socks it wishes to produce.
Correct Answer:

Verified
The opportunity cost...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q74: In a single day, George can bake
Q75: An economy is said to have a
Q76: Figure: Production Possibility Frontier<br>(Figure: Production Possibility Frontier)
Q79: Figure: Production Possibility Frontier Curve for Tealand<br>
Q80: A firm is an organization that produces
Q81: Which of the following is an example
Q83: The models used in economics:<br>A.are usually limited
Q87: The simplest circular-flow model shows the interaction
Q203: Economists disagree more over normative economics than
Q253: If the opportunity cost of manufacturing machinery