Refer to the above diagram for athletic shoes.If the current output of shoes is Q₃, then: A)resources are being allocated efficiently to the production of shoes. B)society would consider additional units of shoes to be more valuable than alternative products. C)society would consider additional units of shoes to be less valuable than alternative products. D)society would experience a net gain by producing more shoes.

Question

Quizplus · Accepted Answer

The current output of Q₃ indicates that resources are being allocated towards the production of athletic shoes, but society would consider additional units of shoes to be less valuable than alternative products. This can be inferred because the production possibility frontier shows a trade-off between producing athletic shoes and other goods, and as more shoes are produced, the opportunity cost of producing shoes increases. Therefore, society would only want additional units of shoes if the opportunity cost of producing them decreases.

Refer to the Above Diagram for Athletic Shoes