The quantity of shoes produced is measured along the x-axis of a bowed-outward production possibilities frontier and the quantity of shirts produced is measured along the y-axis.As you move down towards the right along the production possibilities frontier,the marginal cost of
A)a pair of shoes decreases.
B)a pair of shoes increases.
C)a shirt remains constant.
D)a shirt equals the marginal benefit from a pair of shoes.
E)a pair of shoes and a shirt is equal at the midpoint between the x-axis and the y-axis.

Question

Quizplus · Accepted Answer

As you move down towards the right along the production possibilities frontier, the marginal cost of producing a pair of shoes increases. This is because producing more shoes requires giving up increasingly larger quantities of shirt production. The opportunity cost of producing shoes in terms of shirts foregone increases as we move down the curve. Therefore, the marginal cost of shoes increases.

The Quantity of Shoes Produced Is Measured Along the X-Axis