The production possibilities model shows an inverse relationship between the amount of one thing and the amount of something else that can be produced because
A. the opportunity cost of producing more of something will fall.
B. production of different types will compete for limited resources.
C. of diminishing returns.
Production Possibility Frontier
A production possibility frontier is a graph that shows the combinations of production of two different goods when the economy is using all its resources efficiently.
Answer and Explanation: 1
The correct option is B. production of different types will compete for limited resources.
The two goods that a production possibility frontier will...
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fromChapter 11 / Lesson 28
Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.