For a Farm Producing Two Crops and Operating on the Production

question 40

Multiple Choice

For a farm producing two crops and operating on the Production Possibilities Frontier (curve) where revenue is maximized, a change in the price of a third output will:

• A) shift the Production Possibilities Frontier (curve) inward
• B) shift the isorevenue line outward
• C) none of the other three answers
• D) increase the costs of production

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