The diagram illustrates an economy’s production possibility curve. The economy is making combinations of goods and services by using all available resources. What does the production possibility curve indicate about goods and services?
- Aconstant returns to scale in the production of both goods and services
- Bdiminishing returns to scale in the production of both goods and services
- Cincreasing returns to scale in the production of both goods and services
- Dinfinite returns to scale in the production of both goods and services