Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

Why does the production possibility curve have a concave shape towards the origin?

  • ACapital goods are a more labour intensive output than consumer goods.
  • BConsumers always seek to maximise their satisfaction from consumption.
  • CProfit maximisation for firms always ensures efficiency in production.
  • DSome resources are more efficient in production of some goods than others.

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