Production possibility curves — practice question

The diagram illustrates the production possibility curves for two countries, X and Y. What conclusion can be drawn from the diagram?

• ABoth countries have decreasing opportunity cost in the production of consumer goods.
• BBoth countries should produce 40 units of capital goods and 20 units of consumer goods.
• CCountry Y has constant opportunity cost in the production of consumer goods.
• DCountry Y is producing more consumer goods than country X.