(Figure: Guns and Butter) Look at the Figure Guns and Butter.If

Essay

(Figure: Guns and Butter) Look at the figure Guns and Butter.If the economy were operating at point B, producing 16 guns and 12 pounds of butter per period, a decision to move to point E and produce 18 pounds of butter:
A.indicates you can have more butter and guns simultaneously.
B.makes it clear that this economy experiences decreasing opportunity costs.
C.involves a loss of 8 guns per period.
D.involves a loss of 4 guns per period.