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GUNS 600 E с F 500 B 400 G A 300 D 700 ROSES 350 500 580 4. Which one of the following statements is correct at Point G? move

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Answer #1

The right answer is, movement from point G to point A is possible and it involves no opportunity cost whatsoever. As we can see, at point G the economy has an utilise resources, therefore, without sacrificing the production of guns the economy can easily increase the production of roses by moving to the point A.

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