A marginal cost curve that is
A)a horizontal line is derived from a PPF that has a bowed-out shape.
B)upward sloping is derived from a PPF that has a constant slope.
C)vertical is derived from a PPF that has a bowed-out shape.
D)downward sloping is derived from a PPF that has a bowed-out shape.
E)a horizontal line is derived from a PPF that has a constant slope.

Question

Quizplus · Accepted Answer

A horizontal marginal cost curve implies constant costs of production, which corresponds to a PPF (Production Possibility Frontier) with a constant slope, indicating constant opportunity costs.

A Marginal Cost Curve That Is