In Which of the Following Cases Will the Production Possibility

question 24

Multiple Choice

In which of the following cases will the production possibility frontier depict an increasing opportunity cost of producing one good relative to another?

• A)The PPF becoming more linear
• B)The PPF becoming more convex to the origin
• C)The PPF becoming more concave to the origin
• D)The PPF curve becoming flatter

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Definitions:

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Short Run

The length of time it takes all fixed costs to become variable costs.

Long Run

The long run is a period in economics wherein all inputs can be adjusted, and there are no fixed costs, allowing full operational flexibility.