Question

Ans. Option e - Constant

Opportunity cost of corn is the consumption of Coffee forgone to increase consumption of corn by 1 unit.

As can be seen from the production possibility frontier, for each increase of 2 million bushels of corns consumption, consumption of coffee has to be decreased by 1 million bushels. So, opportunity cost of consumption of corn is constant and is 0.5 bushel of coffee.

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