If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then
A. The production possibilities curve between tanks and automobiles will shift outward.
B. The production possibilities curve between tanks and automobiles will appear as a straight line.
C. Increasing opportunity costs will occur with greater tank production.
D. Decreasing opportunity costs will occur with greater automobile production.
Answer: C
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