-In the Above Figure, in Order for This Country to Move

question 83

Multiple Choice

-In the above figure, in order for this country to move from production possibilities frontier PPF₁ to
PPF₂, it might

• A) put all unemployed resources to work producing desired output.
• B) increase the average level of prices for all goods produced and consumed.
• C) engage in exchange with other nations.
• D) increase the skills and productivity of its work force.

---

Definitions:

Marginal Revenue

Enhanced revenue from the sale of an incremental unit of a product or service.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Profit-maximizing Output

This is the level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in producing its goods or services.