PPC is the production possibility curve in country T.
Which changes take place in country T’s opportunity costs of producing X as it increases production of X?
1 )
Opportunity costs are constant between points 1 and 2, and between points 3 and 4.
2 )
Opportunity costs decrease between points 1 and 2, and increase between points 3 and 4.
3 )
Opportunity costs decrease between points 1 and 2, and between points 3 and 4.
Opportunity costs increase between points 1 and 2, and between points 3 and 4.
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