Correct Answer: Option B

Explanation

In short, production possibility curve is a curve which shows all possible combinations of two goods that can be produced by making full use of given resources and technology in an economy.

A production possibility curve measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors ofproduction. ... Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other.

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