Question

Businesses create production possibilities charts in order to visualize:

A. the profits expected from using different production strategies.
B. changes in productivity for different parts of the business over
time.
C. options for producing multiple products in different quantities,
D. the risk of suffering losses when producing different products.

Answer 1

C. options for producing multiple products in different quantities

Step-by-step explanation:

A production possibilities chart is a diagram that shows all the different product combinations that can be achieved with a given amount of resources. In its most basic form, the production possibilities frontier shows two goods, one in the x axis, and another in the y axis, with the slope being the opportunity cost (or marginal rate of substitution) of a particular production point.

Businesses use production possibilities charts to see the different combinations of goods that they can produce with the amount of resources that they have at their disposal.