Question

As you move from one efficient point on the production possibilities frontier (PPF) to another efficient point on the PPF, you experience:

Answer 1

Change in opportunity cost.

Step-by-step explanation:

A production possibilities frontier shows the different bundles or combinations of goods or services that can be produced using the given resources.

This curve is concave to the origin because of increasing marginal opportunity cost. This means that as we go on increasing output, the opportunity cost of sacrificing its alternative.

When you move from one efficient point on the PPF to the other point the opportunity cost changes.