-Refer to the figure above.In autarky equilibrium,the relative price is given by the slope of the production possibility frontier at point
A)D.
B)E.
C)F.
D)Can't answer without more information.

Question

-Refer to the figure above.In autarky equilibrium,the relative price is given by the slope of the production possibility frontier at point
A)D. 
B)E. 
C)F. 
D)Can't answer without more information.

Quizplus · Accepted Answer

In autarky equilibrium, the relative price is given by the slope of the production possibility frontier (PPF) at the point where the community's indifference curve is tangent to the PPF. This is typically represented by the equilibrium point where the economy is producing and consuming. Since the question specifies point E without providing a visual, we infer that point E is meant to represent this tangent point, indicating the equilibrium position in autarky.

-Refer to the Figure Above