Use the Following Diagram to Answer the Following Questions

Multiple Choice

Use the following diagram to answer the following questions.


-Refer to Housing. As we move down the production possibilities curve from point A to point C, there will be:

A) an increase in both the marginal cost and marginal benefit of cars.
B) a decrease in both the marginal cost and marginal benefit of cars.
C) a decrease in the marginal cost of cars and an increase in the marginal benefit of cars.
D) an increase in the marginal cost of cars and a decrease in the marginal benefit of cars.