The question requires us to determine the combination of output that can be produced by Atlantis.
Explanation of Solution
The following graph represents the PPC for potatoes and fish in the Atlantis economy:
Atlantis can produce any combination of these two products which lies on the
So, the only possible combination from the given option is (400, 600) i,e 400 pounds of potatoes and 600 pounds of fish lies on the PPC as shown by point D in the above graph.
Thus, option “c” is correct.
The production possibility curve (PPC) represents the all possible combination of two goods that can be produced by using the given resources in an economy.
Chapter 1R Solutions
Krugman's Economics For The Ap® Course
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