-In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve.
A) marginal cost; marginal benefit
B) marginal cost; trade line
C) marginal benefit; trade line
D) production possibilities frontier; trade line

Question

-In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve.
A) marginal cost; marginal benefit 
B) marginal cost; trade line 
C) marginal benefit; trade line 
D) production possibilities frontier; trade line

Quizplus · Accepted Answer

The curve labeled a represents the marginal cost curve because it shows the additional cost incurred for producing one more unit of a good. The curve labeled b represents the marginal benefit curve, as it illustrates the additional benefit received from consuming one more unit of a good.

-In the Above Figure, the Curve Labeled a Is the ________