Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk
A) falls.
B) rises.
C) probably changes, but in an ambiguous direction.
D) does not change.

Question

Quizplus · Accepted Answer

Moving along a bowed-out PPF implies that as more milk is produced, resources that are better suited for cotton production are being used to produce milk, leading to an increase in marginal cost for milk production. Therefore, the answer is (B) rises.

Moving Along a Bowed-Out PPF Between Milk and Cotton, as More