Suppose the production possibilities frontier for skirts and pants is a straight line. As the production of skirts increases, the marginal benefit from skirts
A)increases and marginal cost is constant.
B)is constant and marginal cost decreases.
C)decreases and marginal cost increases.
D)decreases and marginal cost decreases.
E)decreases and marginal cost is constant.

Question

Quizplus · Accepted Answer

A straight-line production possibilities frontier indicates constant opportunity costs, meaning the marginal cost of producing skirts remains constant as production increases. However, the marginal benefit typically decreases as more of a good is produced due to diminishing returns.

Suppose the Production Possibilities Frontier for Skirts and Pants Is