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Assume That Resources Are NOT Perfectly Adaptable to the Production

Question 22

Multiple Choice

Assume that resources are NOT perfectly adaptable to the production of both good A and good B.Which statement best corresponds to this situation?  


A)  The opportunity cost of A increases as production of A increases. 
B)  The opportunity cost of A decreases as production of A increases. 
C)  It is impossible for the economy to produce both A and B. 
D)  The opportunity cost of A is constant.

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