Question

If the slope of a linear PPF equals 3, which of the following is/are true?

Question 6 options:

	all of the items here are true
	the opportunity cost of one more unit of good x is 3 units of y
	the opportunity cost of one more unit of good y is 1/3 units of x
	opportunity cost is constant

Each month I pay my Netflix bill of $9 for unlimited viewing. I usually watch about 9 hours per month. The marginal cost of my 9th hour of viewing is

Question 8 options:

	none of the items here are correct
	$9
	$0
	$1

Answer 1

6.If the slope of a linear PPF equals 3 , it refers to the oppurtunity cost of moving from one combination of good to another , thus there is always a trade of between two goods. The opportunity cost is 3 thus it is constant. The other two options - the opportunity cost of one more unit of good x is 3 units of y and the opportunity cost of one more unit of good y is 1/3 units of x , actually representing opportunity cost in two different ways thus all the options are correct here.

8. Each month I pay my Netflix bill of $9 for unlimited viewing so the numbers of hours I view does not change the monthly cost , so change in cost is zero whether the number of hours I watch changes , so the marginal cost of 9th hour is 0.