In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A)dollar value of the additional output.
B)area in the arc between the PPF and a straight line drawn between the starting point and the ending point.
C)dollar value of the resources used to produce the good.
D)amount of the other good or service that must be forgone.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

The cost of producing more units of a good on a production possibilities frontier is measured by the opportunity cost, which is the amount of the other good or service that must be forgone.

In a Production Possibilities Frontier Graph, the Cost of Producing