: Figure: Guns and Butter Guns (per period) |А 18 B Production possibility frontier 16 12 E 8 H. F 4 0 4 8 12 16 18 20 Butter (per period) Reference: Ref 2-2 Look at the figure Guns and Butter. On this figure, points A, B, E, and F: indicate that society wants butter more than it wants guns. indicate constant costs for guns and increasing costs for butter. show that the opportunity cost of more guns increases but that of more butter decreases. indicate combinations of guns and butter that society can produce using all of its factors efficiently.

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