The points on a production possibilities curve show
A)Desired output.
B)Actual output.
C)Potential output.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the maximum output combination of two goods that can be produced given the available resources and technology. Thus, the points on the curve represent the potential maximum output combination that can be produced.

The Points on a Production Possibilities Curve Show