If points A and B are two locations on a country's production possibility frontier,then
A) the country could produce either of the two bundles.
B) consumers are indifferent between the two bundles.
C) producers are indifferent between the two bundles.
D) at any point in time, the country could produce both.
E) both bundles must have the same relative cost.

Question

Quizplus · Accepted Answer

If both points A and B are on the PPF, then the country can produce either of the two bundles. Points on the PPF represent efficient allocation of resources and all feasible combinations of goods that can be produced by an economy. Therefore, the country is capable of producing all points on the PPF, including points A and B. Consumers and producers may have preferences or cost structures that lead them to prefer one bundle over the other, but both bundles are feasible and efficient according to the PPF.

If Points a and B Are Two Locations on a Country's