Questions: Graphing 26) Each graph below demonstrates opportunity cost. Underneath each graph, list what is happening to opportunity cost. (1/2 point each question)

Solution Steps

The first graph shows a straight downward-sloping line. This indicates a constant opportunity cost. As you move along the line, the trade-off between the two goods remains the same.

The second graph shows a concave curve. This indicates increasing opportunity cost. As you produce more of one good, the opportunity cost of producing additional units of that good increases.

The third graph shows a convex curve. This indicates decreasing opportunity cost. As you produce more of one good, the opportunity cost of producing additional units of that good decreases.

Final Answer