A production possibilities curve shows the:

Question

Quizplus · Accepted Answer

A production possibilities curve illustrates the maximum possible production of two different goods that can be produced with a given set of resources and technology at any given time. It represents the different combinations of goods that can be produced, given that resources are limited and scarce. Hence, option C is the correct answer. Option A and D are incorrect because the curve does not show the dollar costs or prices of goods, but rather the potential quantity that can be produced. Option B is also incorrect since the curve does not explicitly show the amount of labor and capital needed to produce one good, but it rather shows combinations of goods that are possible given a set of resources.

A Production Possibilities Curve Shows The