The slope of a production possibilities curve represents the ________.
A) marginal cost of producing the good measured on the x-axis
B) marginal cost of producing the good measured on the y-axis
C) opportunity cost of producing the goods
D) ratio of the average cost of producing both goods

Question

Quizplus · Accepted Answer

The slope of a production possibilities curve represents the opportunity cost of producing the goods. This is because as we move along the curve, we have to give up more and more of one good in order to produce an additional unit of the other good. This increasing opportunity cost is reflected in the slope of the curve.

The Slope of a Production Possibilities Curve Represents the ________