According to the law of increasing opportunity cost,
a. production points outside the production possibility frontier are unattainable
b. the production possibility frontier becomes flatter as production increases along the horizontal axis
c. the opportunity cost of producing a good rises as production of that good falls
d. production points inside the production possibility frontier are unattainable
e. the opportunity cost of producing a good rises as production of that good rises
The correct answer is a. production points outside the production possibility frontier are unattainable
Explanation:
Production possibility frontier graph is attached.
The production possibility frontier shows the possibilities of trade off between two products. The trade off in this frontier use all the resources available. So it is impossible to reach a point outside the frontier, there are not enough resources.
