Question

Why are production possibilities curves helpful for businesses?

A. They show how many products will need to be sold to earn a
profit.
B. They show how producing one product affects production of
another.
C. They predict how a product's sales will rise and fall over time.
D. They compare production efficiency between multiple companies.

Answer 1

Answer: B - they show how producing one product affects production of another.

Explanation: Uses comparative advantage to allocate production factors, thus obtaining better efficiency