Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates the production possibility curve for a desert island economy in which the inhabitants make only two goods, coconuts and fish. What accounts for the shape of the production possibility curve?

  • ACoconuts and fish are perfect complements.
  • BCoconuts and fish are perfect substitutes.
  • CThe inhabitants consume more fish than coconuts.
  • DThe opportunity cost of increasing fish production is constant.

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