The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to and it as more cloth is produced.
A)- MPLF/MPLC; becomes steeper
B)- MPLC/MPLF; becomes steeper
C)- MPLC/MPLF; is constant
D)- MPLF/MPLC; becomes flatter
E)- MPLF/MPLC; is constant

Question

Quizplus · Accepted Answer

The slope of the production possibility frontier is equal to the ratio of the marginal product of labor in food production (MPLF) to the marginal product of labor in cloth production (MPLC). As more cloth is produced, the marginal product of labor in cloth production will decrease, causing the slope of the production possibility frontier to become steeper.

The Slope of a Country's Production Possibility Frontier with Cloth