-In the figure above, suppose that Mac and Izzie trade and reach point c. Then
A) Mac produces outside his production possibilities frontier.
B) Izzie produces outside her production possibilities frontier.
C) Mac and Izzie both produce outside their production possibilities frontiers.
D) neither Mac nor Izzie produce outside their production possibilities frontiers.

Question

-In the figure above, suppose that Mac and Izzie trade and reach point c. Then
A) Mac produces outside his production possibilities frontier. 
B) Izzie produces outside her production possibilities frontier. 
C) Mac and Izzie both produce outside their production possibilities frontiers. 
D) neither Mac nor Izzie produce outside their production possibilities frontiers.

Quizplus · Accepted Answer

When Mac and Izzie trade and reach point c, they are not producing outside their production possibilities frontiers; rather, they are consuming outside their frontiers due to the benefits of trade. This allows them to enjoy a combination of goods that they wouldn't be able to produce on their own, showcasing the advantage of specialization and trade.

-In the Figure Above, Suppose That Mac and Izzie Trade