Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates the production possibility curve for wheat and corn. What may be inferred from the diagram?

  • AAs the price of corn falls, more of it is demanded.
  • BResources used in producing corn are more efficient than in producing wheat.
  • CThe opportunity cost of producing corn falls when moving from M to N.
  • DThe opportunity cost of producing corn is constant when moving from M to N.

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