Figure 2-3
-Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. Which of the graphs in Figure 2-3 represent(s) his production possibilities frontier?

Question

Figure 2-3 
-Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. Which of the graphs in Figure 2-3 represent(s) his production possibilities frontier?

Quizplus · Accepted Answer

Graph C represents a bowed-out production possibilities frontier, which is typical when resources are not equally efficient in producing both goods. This reflects the scenario where some land is better suited for cattle and some for llamas, leading to increasing opportunity costs.

Figure 2-3 -Refer to Figure 2-3. Sergio Vignetto Raises Cattle and Llamas