the graph shows the production possibilities curve for an economy in which both pizzas and industrial robots…

the graph shows the production possibilities curve for an economy in which both pizzas and industrial robots are produced. given this graph, which of the following statements is true?\n\na) point w is the largest possible output in this economy.\n\nb) the opportunity cost of moving from point c to point d, to produce 100,000 more pizzas, is 300,000 industrial robots.\n\nc) point a represents a point of unemployment, because no pizzas are being produced.\n\nd) the curve bows outward because as the production of robots increases, the production of pizzas increases.\n\ne) the curve bows outward because all resources are perfectly adaptable for producing either pizzas or industrial robots.

the graph shows the production possibilities curve for an economy in which both pizzas and industrial robots are produced. given this graph, which of the following statements is true?\n\na) point w is the largest possible output in this economy.\n\nb) the opportunity cost of moving from point c to point d, to produce 100,000 more pizzas, is 300,000 industrial robots.\n\nc) point a represents a point of unemployment, because no pizzas are being produced.\n\nd) the curve bows outward because as the production of robots increases, the production of pizzas increases.\n\ne) the curve bows outward because all resources are perfectly adaptable for producing either pizzas or industrial robots.

Answer

Brief Explanations:

  • Point W is inside the curve, so it's not the largest possible output.
  • From C to D, the number of industrial - robots decreases from 7000 to 4000 (a decrease of 3000) when producing 100000 more pizzas.
  • Point A is on the curve, so it represents full - employment of resources in producing only industrial robots.
  • The curve bows outward because of increasing opportunity cost, not because production of both increases simultaneously. Also, if resources were perfectly adaptable, the curve would be a straight line.

Answer:

B. The opportunity cost of moving from Point C to Point D, to produce 100,000 more pizzas, is 300,000 industrial robots.