If a person produces capital goods, she sacrifices current production of consumer goods in order to obtain the capability of producing more goods and services in the future. This is called roundabout production

In the figure above, the total benefit from pizza is ________ per day

A) $100,000 B) $50,000 C) $125,000 D) $150,000 E) None of the above answers is correct.

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.