Use the Figure Below to Answer the Following Questions

question 8

Multiple Choice

Use the figure below to answer the following questions.
Figure 2.1.6
-Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.This PPF _______ illustrate scarcity because _______.

• A)does; as more is produced, consumers must pay a higher price
• B)does not; the PPF is downward sloping
• C)does not; the firm can produce any quantity it wants if it is willing to charge a high enough price
• D)does not; scarcity does not occur in the market for pet food
• E)does; the firm cannot produce points outside the frontier, and as the firm moves along the PPF, it cannot produce more dog biscuits without producing less cat food