The diagram shows an economy’s production possibility curve. The economy produces combinations of goods and services using all available resources.
What does the production possibility curve indicate for goods and services?
constant returns to scale in the production of both goods and services
2 )
diminishing returns to scale in the production of both goods and services
3 )
increasing returns to scale in the production of both goods and services
4 )
infinite returns to scale in the production of both goods and services
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