Suppose you own a courier service and you use two types of delivery vehicles - Model A, which costs $30000 to purchase, and Model B, which costs $50 000 to purchase. You have a budget of $300 000 for the purchase of new vehicles. Which of the following statements best describes the shape of your budget line?
◦ The budget line is convex to the origin, indicating that the opportunity cost of each vehicle decreases with each additional unit purchased.
◦ The budget line is a straight line, indicating that the opportunity cost of each model of vehicle is independent of how many are purchased.
◦ The budget line is a straight line, indicating that the opportunity cost of each vehicle increases with each additional unit purchased.
◦ The budget line is a straight line, indicating that the opportunity cost of each vehicle decreases with each additional unit purchased.
◦ The budget line is concave to the origin, indicating that the opportunity cost of each model of vehicle increases with each additional unit purchased.
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