Question
Suppose that a country uses labor and capital to produce cars and food. Assume that the Y-axis represents food production and the X-axis represents the
Suppose that a country uses labor and capital to produce cars and food. Assume that the Y-axis represents food production and the X-axis represents the cars production. Which of the following statements is True? a. If the labor constraints curve is steeper than the capital constraints curve, then opportunity cost of Y of labor constraints exceeds that of the capital constraints. b. If the labor constraints curve is steeper than the capital constraints curve, then opportunity cost of X of labor constraints exceeds that of the capital constraints. c. If the labor constraints curve is flatter than the capital constraints curve, then opportunity cost of X of labor constraints exceeds that of the capital constraints. d. None of the above.
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