d 0 Figure 32 Capital Goods Consumer Goods 39 In Figure 32 a

d. 0 Figure 3-2 Capital Goods Consumer Goods 39. In Figure 3-2, at point B a. it is impossible to increase production of consumer goods. b. it is impossible to increase production of C is impossible to increase production of both capital goods and consumer goods simultaneously. capital goods. to increase production of both capital goods and consumer goods simultaneously. ible

Solution

39. At point B , it is not possible i.e impossible to increase production of both capital goods and consumer goods simultaneously because of the limited resources . To increase the production of one good i.e consumer or capital , the production of another good i.e capital or consumer respectively must be decrease. Hence,option (d) is correct.