The graph above shows the PPC for a country that can produce oil or televisions.
The straight line is the trade line and CPC if production is at Point A.
Which of the following is a true statement?
A)This country should produce relatively more butter and relatively less coffee.
B)This country should produce relatively less butter and relatively more coffee.
C)This country should produce more of both goods.
D)This country is producing the optimal mix of butter and coffee to maximize its income.

Question

The graph above shows the PPC for a country that can produce oil or televisions.
The straight line is the trade line and CPC if production is at Point A.
Which of the following is a true statement?
A)This country should produce relatively more butter and relatively less coffee. 
B)This country should produce relatively less butter and relatively more coffee. 
C)This country should produce more of both goods. 
D)This country is producing the optimal mix of butter and coffee to maximize its income.

Quizplus · Accepted Answer

The Answer of 
The graph above shows the PPC for a country that can produce oil or televisions.
The straight line is the trade line and CPC if production is at Point A.
Which of the following is a true statement?
A)This country should produce relatively more butter and relatively less coffee. 
B)This country should produce relatively less butter and relatively more coffee. 
C)This country should produce more of both goods. 
D)This country is producing the optimal mix of butter and coffee to maximize its income.

The Graph Above Shows the PPC for a Country That