The graph indicates that with the resources and technology it has available, Ricardia:
A. can produce either 40 units of rye or 20 units of eggs.
B. can produce both 40 units of rye and 20 units of eggs.
C. cannot produce both 20 units of rye and 10 units of eggs.
D. cannot produce both 20 units of rye and 5 units of eggs.
Answer:A
The graph indicates that with the resources and technology it has available, Ricardia:
A. can produce either 40 units of rye or 20 units of eggs. B. can produce both 40 units of rye and 20 units of eggs. C. cannot produce both 20 units of rye and 10 units of eggs. D. cannot produce both 20 units of rye and 5 units of eggs.
Explanation: From this graph we can tell that with the given inputs, the following combinations are possible [eggs, rye]: (20, 0), (15, 10), (10, 20), (5, 30), and (0, 40).