Figure: Production Possibility Frontier

question 66

Essay

Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.If the economy is operating at point B, producing 16 cars and 12 computers per period, a decision to move to point E and produce 18 computers:
A.indicates you can have more computers and cars simultaneously.
B.makes it clear that this economy has decreasing opportunity costs.
C.involves a loss of 8 cars per period.
D.involves a loss of 4 cars per period.

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