The marginal cost of a good or service
A) can be calculated from the marginal benefit of that good or service.
B) decreases as more of the good or service is produced.
C) can be derived from the production possibilities frontier.
D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping.
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

The marginal cost can be derived from the production possibilities frontier (PPF) as it represents the opportunity cost of producing one more unit of a good, which is reflected in the slope of the PPF.

The Marginal Cost of a Good or Service