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The Slope of a Country's Production Possibility Frontier Is Equal

Question 41

Multiple Choice

The slope of a country's production possibility frontier is equal to _ and the optimal production point is located where the slope is equal to .Assume that output of good Y is measured on the vertical axis,output of good X is measured on the horizontal axis,MPL is the marginal product of labor with a subscript indicating which good,P is the price of a good,and w is the wage rate.


A) - MPLY/MPLX; - PX/PY
B) - MPLX/MPLY; - PX/PY
C) - PX/PY; - MPLY/MPLX;
D) - MPLY/w; - MPLF/w
E) - PX/w; - PY/w

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