What does the negative slope of the production possibilities frontier imply?
A) Diminishing marginal utility
B) The only way to increase one person's utility is to decrease the other's.
C) Diminishing marginal rates of technical substitution
D) The only way to increase output of one good is to decrease output of another.

Question

Quizplus · Accepted Answer

A negative slope of the production possibilities frontier implies that the only way to increase output of one good is to decrease output of another. This is because resources are limited and must be allocated between the production of different goods. Therefore, producing more of one good means sacrificing some of the resources that could have been used to produce the other good.

What Does the Negative Slope of the Production Possibilities Frontier