If all my savings are invested in my consulting company, an increase in the interest rate increases my implicit costs

Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his production possibilities frontier?

A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C

If a society only cares about efficiency and not equity, then

A) all points on the contract curve yield the same level of social welfare. B) it will not rely on competitive markets to allocate goods. C) it will maximize the utility of its worst-off member. D) an equitable outcome is impossible.