The production possibilities frontier model assumes all of the following except

Question

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The production possibilities frontier model assumes that the economy produces only two products (B) and that labor, capital, land, and natural resources are fixed in quantity (A). However, it does not assume that any level of the two products that the economy produces is currently possible (C). The production possibilities frontier represents the maximum amount of output that the economy can produce with its resources and technology, but the actual level of production will depend on the choices society makes about how to use those resources. The model also does not assume that the level of technology is fixed and unchanging (D), as technological advances can shift the production possibilities frontier outward over time.

The Production Possibilities Frontier Model Assumes All of the Following