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In a Production Possibilities Frontier Graph, the Cost of Producing

Question 11

Multiple Choice

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.

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