In a general competitive equilibrium,the slope of the production possibility frontier equals all of the following,except:

Question

Quizplus · Accepted Answer

The slope of the production possibility frontier represents the opportunity cost of producing one good in terms of the other. It is determined by the input ratio in the production of the commodities, which is the amount of one input required to produce a unit of output relative to the other input. The other options (A, B, and C) are correct and represent the different ways in which the slope can be expressed. A represents the trade-off between the costs of producing each good, B represents the trade-off between the satisfaction gained from consuming each good, and C represents the trade-off between the value of each good in terms of the other.

In a General Competitive Equilibrium,the Slope of the Production Possibility