A marginal cost curve that is
A)upward sloping is derived from a PPF that has a constant slope.
B)a horizontal line is derived from a PPF that has a bowed- out shape.
C)a horizontal line is derived from a PPF that has a constant slope.
D)downward sloping is derived from a PPF that has a bowed- out shape.
E)vertical is derived from a PPF that has a bowed- out shape.

Question

Quizplus · Accepted Answer

A horizontal marginal cost curve implies constant marginal costs, which is consistent with a PPF (Production Possibility Frontier) that has a constant slope, indicating constant opportunity costs between the two goods being produced.

A Marginal Cost Curve That Is