22 An economy produces only two goods, guns and butter. If the economy is operating at the edge of its production possibilities curve, it can produce more guns only if:Point) It moves to a point inside its production possibilities curve. It raises the price of butter. It also produces more butter. It produces less butter.

If an economy is operating at the edge of its production possibilities curve (PPC), it is producing at maximum efficiency, meaning all resources are fully utilized. In this scenario, to produce more of one good, such as guns, the economy must reallocate resources from the production of the other good, which in this case is butter. Therefore, the correct answer is:<br /><br />It produces less butter.