The question is about Production Possibility Curve (PPC). See the the definition of a PPC below.
<h3>What is a Production Possibility Curve?</h3>
A production-possibility frontier, also known as a production possibility curve (PPC), or production possibility boundary, or transformation curve/border/frontier, is a curve that depicts various quantities of two goods that can be manufactured within the given resources and technology.
That is a graphical representation of all the possible output options for two products manufactured using all factors of production, where the given resources are fully and efficiently utilized.
<h3>From the graph given, At point A, what is the quantity of dogs and cats produced?</h3>
The quantity of dogs produced at point A = 120; while the quantity cats produced at point A = 25.
<h3>What is the opportunity cost if we want to increase production of cats from 25 units to 50 units? What is the opportunity benefit?</h3>
To up the production of Cats form 25 to 50 units, the company must forego 40 units of dogs. Hence the number of dogs produced will drop to 80 units.
<h3>What do we give up if we want to produce 100 units of cats?</h3>
To produce 100 units of cats, 80 units of dogs must be passed up.
<h3>Can we produce at point D? If not, what would we need to produce more at point D?</h3>
No, we cannot produce at point D.
To be able to produce at point D the quantity of resources owned must increase or expand.
Another factor that can can trigger production at point D is increase in technological advancement.
<h3>What is wrong with producing at point E?</h3>
Producing at point E means that the company is underutilizing it's resources. Hence, this will lead to a lot of waste.
Another way to state this is that production is inefficient.
Learn more about PPC at:
brainly.com/question/27853463
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