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) rises.
B) does not change.
C) falls.
D) probably changes, but in an ambiguous direction.

Question

Quizplus · Accepted Answer

The bowed-out shape of the production possibilities frontier (PPF) indicates increasing opportunity costs. As more milk is produced, resources less suited for milk production are used, raising the marginal cost of an additional gallon of milk.

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