The quantity of shoes produced is measured along the x-axis of a bowed-outward production possibilities frontier and the quantity of shirts produced is measured along the y-axis. As you move down towards the right along the production possibilities frontier, the marginal cost of
A)a pair of shoes decreases.
B)a pair of shoes increases.
C)a shirt remains constant.
D)a shirt increases or decreases but we don't know for sure.
E)a pair of shoes and a shirt is equal at the midpoint between the x-axis and the y-axis.

Question

Quizplus · Accepted Answer

As we move down towards the right along the production possibilities frontier, the opportunity cost of producing shirts increases, which means that the marginal cost of producing a pair of shoes increases as well. Therefore, the correct choice is B - a pair of shoes increases.

The Quantity of Shoes Produced Is Measured Along the X-Axis