On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented by the: a. distance to the curve from the vertical axis. b. distance to the curve from the horizontal axis. c. movement along the curve. d. All of these are true.

The correct answer is letter "C": movement along the curve.

Explanation:

The Production Possibility Curve (PPC) aims to provide companies guidelines to achieve the maximum level of production using the maximum number of resources available. Plotted in a graph, with a vertical "X" axis and a horizontal "Y" axis, each variable represents producing one particular product. Producing one more unit of goods in the "X" axis will imply producing fewer units of the goods in the "Y" axis and vice versa.

Thus, the slope of the PPC will represent the opportunity cost of producing goods in the "X" axis over the goods in the "Y" axis.

answerpurchase-occasion segmentation;