A Society Can Produce Two Goods: Donuts and Beer

Multiple Choice

A society can produce two goods: donuts and beer. The society's production possibility frontier is negatively sloped and "bowed outward" from the origin. As this society moves down its production possibility frontier, producing more and more units of donuts, the opportunity cost of producing beer

A) decreases.
B) remains constant.
C) increases.
D) could decrease or increase depending on the technology.