When operating on the production possibilities frontier, producing more of one good generally results in less of the other good due to the:
A) opportunity cost.
B) changing technology.
C) theory of marginal cost.
D) maximization model.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the trade-offs and opportunity costs of producing two goods. When operating on the PPF, increasing production of one good means reallocating resources from the production of the other good, leading to a decrease in its production due to the opportunity cost involved.

When Operating on the Production Possibilities Frontier, Producing More of One