As more albums are produced, the opportunity costs for sushi donuts for each producer change. The opportunity cost is what a producer gives up to produce one more album instead of one more sushi donut. Here's how the opportunity costs change for each producer:
- Rosie's opportunity cost: This is the value of the next best alternative to producing an album, which in this case is making sushi donuts. If Rosie decides to produce more albums, she has to give up making more sushi donuts. Therefore, Rosie's opportunity cost for sushi donuts increases as she produces more albums because she sacrifices the opportunity to make more sushi donuts.
- Jacque's opportunity cost: Similarly, Jacque's opportunity cost for sushi donuts also increases as he produces more albums. Just like Rosie, Jacque has to forgo the production of sushi donuts to focus on making more albums. Therefore, his opportunity cost for sushi donuts goes up as well.
Therefore, the correct answer is: E) Both increase.
