An economy produces only agricultural products x and


An economy produces only agricultural products (x) and manufactured goods (y). A quarter of the land in the country is arid and not suitable for agricultural products. Therefore, if half of the arid land is not used at all:

(a) The economy could be productively efficient when the opportunity cost of x (agricultural products) is infinite;

(b) The economy could be productively efficient when the opportunity cost of y (manufactured goods) is zero;

(c) The economy could be productively inefficient with infinite opportunity cost for the production of x (agricultural products);

(d) The economy could be productively inefficient with infinite opportunity cost for the production of y (manufactured goods).

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Business Economics: An economy produces only agricultural products x and
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