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An economy can produce 80 units of good X and 4 units of good Y or 70 units of good X and 6 units of
An economy can produce 80 units of good X and 4 units of good Y or 70 units of good X and 6 units of good Y by fully and efficiently using available resources. If the opportunity cost of producing good Y (relative to good X) is increasing, which of the following combinations of goods X and Y can be a point on the production possibilities curve for that economy? a) 73 X and 5Y; b) 76 X and 5 Y; c) 74 X and 5 Y; d) 71 X and 5 Y
Why is b) the correct answer?
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