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

Question

Quizplus · Accepted Answer

The negative slope of the utilities possibilities frontier implies that in order to increase one person's utility, another person's utility must be decreased. This is because resources are limited and must be allocated among different individuals. Therefore, any increase in utility for one person must come at the expense of another person. This is the concept of opportunity cost.

What Does the Negative Slope of the Utilities Possibilities Frontier