Moving along a bowed- out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk

Question

Quizplus · Accepted Answer

As more milk is produced, the resources used to produce milk are likely not perfectly adaptable to the production of cotton. Thus, the law of increasing opportunity cost applies, and the opportunity cost of producing milk (measured in terms of foregone cotton production) rises, causing the marginal cost of an additional gallon of milk to also rise.

Moving Along a Bowed- Out PPF Between Milk and Cotton