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PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
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PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
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2. Introductory Economic Models / PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency / Problem 7
Problem 7
Why can't marginal benefit be derived directly from a PPF?
A
Because a PPF is a straight line.
B
Because a PPF shows the marginal benefit directly.
C
Because a PPF includes consumer preferences.
D
Because a PPF only shows the maximum possible production of two goods.
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