Asked by
Deborah Cassidy-Cobb
on Oct 25, 2024
Verified
What does the negative slope of the production possibilities frontier imply?
A) Diminishing marginal utility
B) The only way to increase one person's utility is to decrease the other's.
C) Diminishing marginal rates of technical substitution
D) The only way to increase output of one good is to decrease output of another.
Production Possibilities Frontier
A curve depicting all the possible combinations of two goods that can be produced within a given set of resources and technology level.
Marginal Utility
The extra pleasure or benefit derived from using an additional unit of a product or service.
Marginal Rates
The additional cost or benefit associated with a small incremental increase in a unit of activity.
- Acquire knowledge on the production possibilities frontier and its impact on production efficiency and the calculation of opportunity cost.
- Understand the relationship between the production possibilities frontier's slope and economic trade-offs.
Verified Answer
LV
Learning Objectives
- Acquire knowledge on the production possibilities frontier and its impact on production efficiency and the calculation of opportunity cost.
- Understand the relationship between the production possibilities frontier's slope and economic trade-offs.