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Question

The firm can achieve an optimum output combination of two goods with the help of _______________.

A
The production possibility curve
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B
demand curve
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C
cost curve
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D
The price factor curves
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Solution

The correct option is A The production possibility curve
The production possibility curve shows the maximum combination of goods an economy can produce by using its resources efficiently.
The PPC curve enables firms to make decisions in the production process which will benefit them.

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