-Refer to the Above Diagrams

question 118

Multiple Choice

-Refer to the above diagrams.The solid lines are production possibilities curves;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 as between beer and pizza production.
• B) constant costs.
• C) decreasing costs.
• D) increasing costs.

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Definitions:

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Onora O'Neill

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