that gun production falls by larger and larger amounts each time butter production increases by 100 tons.
To make as much as possible of both goods, it will shift those resources that are the most useful for making butter and the least useful for making guns,those farmers and barns and milking machines. Gun production
will not fall much, because the resources taken away were not doing a lot of good in gun production anyway. So the opportunity cost of the fi rst 100 tons of butter is only 100 guns.
guns, which is higher than the opportunity cost of moving from point A to point B. So the more butter the country is already producing, the greater the opportunity cost of producing more butter.