A country cannot produce a mix of products with a higher value than where
A) the isovalue line is tangent to the production possibility frontier.
B) the isovalue line intersects the production possibility frontier.
C) the isovalue line is above the production possibility frontier.
D) the isovalue line is below the production possibility frontier.
E) the isovalue line is tangent with the indifference curve.

Question

Quizplus · Accepted Answer

The highest value mix of products is achieved where the isovalue line is tangent to the production possibility frontier, indicating the most efficient allocation of resources.

A Country Cannot Produce a Mix of Products with a Higher