- 14 Which Of The Following Best Describes Why The Production Possibilities Frontier Has Negative Slopes A Diminishing 1 (128.45 KiB) Viewed 27 times
14. Which of the following best describes why the production possibilities frontier has negative slopes? a. Diminishing marginal utility b. The only way to make one person better off is to make another person worse off. c. Constant marginal costs d. The only way to increase output of one good is to decrease output of another 15. The efficiency condition of the output mix is best described as a. The marginal rate of transformation is equal to the ratio of the marginal costs of the goods produced. b. The marginal rate of substitution and price of goods are the same for all consumers. c. The marginal rate of substitution must be the same for all producers. d. The marginal rate of transformation equals the marginal rate of substitution of consumers.