The diagram shows the production possibility curve of a desert island economy where the inhabitants live off just two commodities, coconuts and fish.
What explains the shape of the production possibility curve?
1 )
Coconuts and fish are in joint demand.
2 )
Coconuts and fish are perfect substitutes when consumed.
Fishing and coconut growing are equally efficient.
4 )
The opportunity cost of fish falls as more time is devoted to fishing.
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