Multiple Choice
Use the following to answer question(s) :
Exhibit: Bicycles and Radishes 1
-(Exhibit: Bicycles and Radishes 1) The exhibit shows production possibilities curves for two countries that produce only radishes and bicycles. The axes of both graphs are measured in equivalent units. Country A is now operating at point M, and Country B is now operating at point N. Suppose Country A discovered a new technology that greatly increased its ability to produce bicycles. This would:
A) lower the opportunity cost of producing radishes in Country A.
B) increase the opportunity cost of producing radishes in Country A.
C) have no effect on the opportunity cost of producing radishes in country A.
D) increase the opportunity cost of producing radishes in Country B.
Correct Answer:

Verified
Correct Answer:
Verified
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