The diagram shows the production possibility curve (PPC) for an economy.
What will happen to the opportunity cost of producing more units of consumer goods in terms of capital goods as the economy moves down its PPC from point X to point Z?
1 )
It will decrease continuously from point X to point Z.
2 )
It will decrease up to point Y and then increase towards point Z.
It will increase continuously from point X to point Z.
4 )
It will increase up to point Y and then decrease towards point Z.
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