The slope of the production possibility frontier shows
A)the marginal rate of substitution between the two goods.
B)the relative marginal costs of the two goods.
C)the efficient combination of outputs possible using fixed amounts of input.
D)the relative marginal productivities of the two goods.

Question

Quizplus · Accepted Answer

The slope of the production possibility frontier (PPF) represents the opportunity cost of producing one good over another, which is essentially the relative marginal costs of the two goods. It indicates how much of one good must be given up to produce more of the other good.

The Slope of the Production Possibility Frontier Shows