Remember that the slope of the PPF is the opportunity cost of
one good in terms of the other, in this case of boats in terms
of cars. While this isn't a trick question, it is a little tricky.
The reason that the answer is B is because at point B the opportunity
cost is zero. Since not all resources are being used at B, both more
boats and more cars can be produced without giving up either.
If we had been only considering points along the PPF the answer
would be D. At D the PPF is very steep and more boats can be
produced without having to give up many cars. At A the cost of
boats in terms of cars is very high.
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