Choco Dream is a firm that produces both dark chocolates as well as liquor chocolates. During a given? month, the firm uses its resources to produce both varieties.? Initially, the firm produced? 5,000 bars of dark chocolates and?4,000 bars of liquor chocolates in a month. In order to increase production of the latter to? 4,500, they had to reduce production of dark chocolates by 800 bars. When demand for liquor chocolates increased? further, Choco Dream produced? 5,000 bars of liquor chocolates and? 3,200 bars of dark chocolates per month.
Which of the following inferences can be drawn from the given? information?
A. The company is operating at one end of the PPF.
B. Choco Dream faces increasing marginal opportunity cost in the production of liquor chocolates.
C. Both types of chocolates sold by Choco Dream are equally popular among consumers.
D. Resources are equally productive in the production of both types of chocolates.
E. Choco? Dream's production possibilities frontier is linear.