Why does the opportunity cost increase as the production of capital goods increases?

Group of answer choices

Capital goods are more expensive to produce

Resources are not perfectly interchangeable in the production of two goods.

The lower supply of consumer goods causes their price to increase.

Capital goods are more useful to society

Buyers are willing to pay more for consumer goods.

2.

If an economy is operating on its PPC for consumer and capital goods, this means:

Group of answer choices

It's impossible to produce more consumer goods

Resources cannot be reallocated between the two goods

More consumer goods can only be produced at the cost of fewer capital goods

It's impossible to produce more capital goods

The economy is not producing what society wants