In the Accompanying Diagrams, Solid Lines Are Production Possibilities Curves

question 60

Multiple Choice

In the accompanying diagrams, solid lines are production possibilities curves, and the dashed lines are trading possibilities curves. The data contained in the production possibilities curves are based
On the assumption of

• A) imperfect substitutability of resources between beer and pizza production.
• B) constant costs.
• C) decreasing costs.
• D) increasing costs.