Point a on a Linear Production Possibilities Curve Represents a Combination

question 48

Multiple Choice

Point A on a linear production possibilities curve represents a combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The absolute value of the slope of the production possibilities curve between points A and B equals:

• A) 6
• B) 4
• C) 3
• D) 1/3

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