Exhibit 3-7 Refer to Exhibit 3-7

Exhibit 3-7 Refer to Exhibit 3-7.The diagram represents a tradeoff in an economy between prison cells and classrooms.Which position represents the choice to allocate the greatest amount of resources to producing classrooms?

A) Point A
B) Point B
C) Point C
D) None of the above are correct. Points on the frontier show the efficient combinations of resources that produce equal quantities of both outputs.