On a graph of a production possibilities frontier,opportunity cost is represented by
A)a point on the horizontal axis.
B)a point on the vertical axis.
C)a ray through the origin.
D)the slope of the production possibilities frontier.
E)the x-axis intercept.

Question

Quizplus · Accepted Answer

The slope of the production possibilities frontier represents the opportunity cost because it shows how much of one good must be given up to produce another good. As you move along the curve, the slope changes, reflecting the fact that more and more of one good must be given up in order to produce additional units of the other good. Therefore, the slope represents the trade-off and opportunity cost between the two goods.

On a Graph of a Production Possibilities Frontier,opportunity Cost Is