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 increases.
B)a shirt remains constant.
C)a pair of shoes decreases.
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 production of shirts increases and the production of shoes decreases. This means that resources that are better suited for producing shirts are being shifted from the production of shoes. Therefore, the marginal cost of producing a pair of shoes increases as less and less efficient resources are being used for shoe production.

The Quantity of Shoes Produced Is Measured Along the X-