The Figure Given Below Shows the Post-Trade Production and Consumption

question 48

Multiple Choice

The figure given below shows the post-trade production and consumption points in country Y. AB is the production-possibility curve of country Y. I₁ is the community indifference curve of country Y. Here country Y's production-possibility curve indicates that it faces _____ marginal costs of production.

• A)constant
• B)increasing
• C)decreasing
• D)fluctuating

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