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Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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2. Introductory Economic Models / Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency / Problem 6
Problem 6
What does moving from one point to another on the PPF illustrate in terms of opportunity cost?
A
Opportunity cost is irrelevant to the PPF model.
B
The opportunity cost of producing more of one good is the amount of the other good that must be given up.
C
There is no opportunity cost involved in moving along the PPF.
D
Opportunity cost is minimized when producing at any point inside the PPF.
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