A PPF Bows Outward Because

question 358

Multiple Choice

A PPF bows outward because

• A) not all resources are equally productive in all activities.
• B) consumers prefer about equal amounts of the different goods.
• C) entrepreneurial talent is more abundant than human capital.
• D) resources are used inefficiently.

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Definitions:

Seller

A person or entity that offers a product or service for sale.

Conglomerate Merger

A merger between companies operating in unrelated business activities, often aimed at diversification and risk management.

Noncompeting Firms

Businesses operating in different markets or sectors and thus do not compete directly with each other for customers.

Unrelated Goods

Products that are not associated or commonly linked together in the context of production, use, or consumption.