A country cannot produce a mix of products with a higher value than where
A)the isovalue line is tangent with the indifference curve.
B)the isovalue line is below the production possibility frontier.
C)the isovalue line is above the production possibility frontier.
D)the isovalue line intersects the production possibility frontier.
E)the isovalue line is tangent to the production possibility frontier.

Question

Quizplus · Accepted Answer

The isovalue line tangent to the production possibility frontier represents the highest value mix of products that can be produced given the resources and technology available.

A Country Cannot Produce a Mix of Products with a Higher