Which of the Following Statements Is True About Production-Possibility Curves

question 45

Multiple Choice

Which of the following statements is true about production-possibility curves?

• A)Constant cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.
• B)Under free trade, bowed-out production-possibility curves are associated with partial specialization, because the opportunity cost of producing each good is constant along the curve.
• C)Increasing cost production-possibility curves provide us with information about the preferences of the consumers.
• D)Constant cost production-possibility curves are convex to the origin.

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