Multiple Choice
Which of the following statements is true about production-possibility curves?
A) Constant cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.
B) Under free trade, bowed-out production-possibility curves are associated with partial specialization, because the opportunity cost of producing each good is constant along the curve.
C) Increasing cost production-possibility curves provide us with information about the preferences of the consumers.
D) Constant cost production-possibility curves are convex to the origin.
Correct Answer:

Verified
Correct Answer:
Verified
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