Figure 2-3 -Refer to Figure 2-3.Sergio Vignetto Raises Cattle and Llamas on Cattle

question 208

Multiple Choice

Figure 2-3

-Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

• A)Graph A
• B)Graph B
• C)Graph C
• D)either Graph A or Graph C
• E)either Graph B or Graph C

---

Definitions:

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution from various sources.

Producer Surplus

The difference between the actual price a producer receives (or producers receive) and the minimum acceptable price; the triangular area above the supply curve and below the market price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, leading to an imbalance and potentially unfair outcomes.