Figure 19-3 Illustrates the Determination of an Efficient Output Mix

Multiple Choice

Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT].
In Figure 19-3,at point Z:

A) the MRT_XY is greater than the MRS_XY.
B) the opportunity cost of producing an additional unit of good X equals 2 units of good Y.
C) the resources in the economy are being used inefficiently.
D) the slope of the production possibility frontier is greater than the slope of the line zz.