The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of
A) shoes decreases.
B) shoes increases.
C) shirts increases.
D) shoes and shirts is equal at the midpoint between the vertical and horizontal axis.

Question

Quizplus · Accepted Answer

As you move down toward the right along the PPF, producing more shoes requires giving up increasingly more shirts, indicating that the marginal cost of shoes increases.

The Quantity of Shoes Produced Is Measured Along the Horizontal