The question requires us to draw the production possibilities curve for an economy which has no specialization in producing milk and cream.
Explanation of Solution
The
The production possibility model with bowed-out and bowed-in downward sloping curve for a firm indicates that the firm is producing the combinations of two goods, and such PPC will have different
So, option “b” is correct.
Chapter 1R Solutions
Krugman's Economics For The Ap® Course
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