Respuesta :
The opportunity cost of butter rises with increased production.
What is a point inside the production possibilities frontier?
In the PPF, all points on the curve are spots of highest productive efficiency (no more output of any good can be successfully accomplished from the given inputs without sacrificing output of another good); all points inside the frontier (such as A) can be produced but are productively inefficient; and all points outside the curve can be produced but are productively inefficient.
What is household to firm?
Households provide work to businesses in exchange for wages. Firms exploit that labor to make pizzas, which they then sell to consumers. Goods (pizzas) go from firms to homes, and labor services (worker hours) flow from households to firms.
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