The production possibilities frontier model assumes all of the following except Group of answer choices labor, capital, land and natural resources are fixed in quantity. the economy produces only two products. any level of the two products that the economy produces is currently possible. the level of technology is fixed and unchanging.

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14-10-2021
Business

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The production possibilities frontier model assumes all of the following except Group of answer choices labor, capital, land and natural resources are fixed in quantity. the economy produces only two products. any level of the two products that the economy produces is currently possible. the level of technology is fixed and unchanging.

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ayfat23 ayfat23 · Answer 1 · 2021-10-27T11:19:04+02:00

The only statement that doesn't belongs to assumption of production possibilities frontier model is C: any level of the two products that the economy produces is currently possible.

In business analysis, The production possibility frontier model can be regarded as a curve that gives illustration about the varying amounts of production of two products, in which their production both depend on the same finite resources.

The PPF explains that the production of one commodity may rise in a case whereby the production of the other commodity decreases

Therefore, option C is correct.

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