Following is the production possibilities schedule for an economy producing two goods, Good A' and Good B.
Table 2.1
Production Possibilities Schedule
Good A
Good B
Choice 1
100
0
Choice 2
90
20
Choice 3
70
40
Choice 4
Choice 5
40
0
60
80
Refer to Table 2.1. According to the production possibilities schedule, in the table above, which of the following statements is true?
a. Moving from choice 3 to choice 4, the opportunity cost of producing 20 more units of good B is 30 units of good A.
b. There are increasing opportunity costs associated with producing more units of good B.
c. Moving from choice 1 to choice 2, the opportunity cost of producing 20 more units of good B is 10 units of good A.
d. All of these statements are true.
e. Moving from choice 2 to choice 3, the opportunity cost of producing 20 more units of good B is 20 units of good A.