If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of shelter along the PPC, which of the following is true?
a. We cannot change the production of food.
b. We must decrease the production of food. This forgone food production represents the opportunity cost of the increase in shelter.
c. We also increase the production of food.
d. The concept of opportunity cost does not apply along PPC.
b
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