The following figure shows the production possibilities frontier for Good A and Good B. In the figure below, point g is efficient because:
Figure 2.2
A) the only way to increase production of Good A is by decreasing production of Good B.
B) the economy can increase production of both Good A and Good B from point g.
C) it is impossible to move to any other point along the production possibilities frontier.
D) it is impossible to move to any other point inside the production possibilities frontier.
E) no other production possibilities frontier exists.
Correct Answer:
Verified
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