Asked by Natalee Hines on Jul 03, 2024

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Suppose Oklahoma decides to produce only two goods,oil and football helmets.If Oklahoma is producing on its production possibility frontier,as oil production increases,the production of football helmets will:

A) increase.
B) not change.
C) decrease at a necessarily decreasing rate.
D) decrease at some rate.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), demonstrating the trade-offs in production volume between different commodities.

Oil

A viscous liquid derived from petroleum, used as fuel and in various industrial applications.

Football Helmets

Protective headgear used in American football designed to reduce the risk of head injuries.

  • Understand the compromises necessary when distributing resources to create various assortments of products.
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HS
hector salinasJul 09, 2024
Final Answer :
D
Explanation :
When Oklahoma is producing on its production possibility frontier (PPF) and decides to increase oil production, it must reallocate resources from producing football helmets to oil production. This trade-off results in a decrease in the production of football helmets. The rate of decrease can vary, but it is not specified as necessarily decreasing, hence the correct answer is that it will decrease at some rate.