Refer lo the graph above Bushra is producing inefficiently a

Refer lo the graph above. Bushra is producing inefficiently at point (s) The shape of the production possibilities frontier indicates that The opportunity cost of moving from point W to point X is the same as the opportunity cost of moving from point Z to point V the opportunity cost of moving from point W to point X is greater than the opportunity cost of moving from point Z to point V. The opportunity cost of moving from point W to point X is less than the opportunity cost of moving from point Z to point V. Point W is less efficient than point V

Solution

25. Ans is option C i.e. point \'T\'.

All points inside the PPF curve are attainable points but are being produced inefficiently.

26. Option A i.e. \"The oppurtunity cost of moving from point W to point X is the same as the oppurtunity cost of moving from point Z to V.\"

Point W : 0 sandals , 4 clogs

point X: 5 sandals, 3 clogs

W to X implies, one clog can be sacrificed to produce 5 more sandals.

Point Z: 15 sandals, 1 clog

Point V: 20 sandals, 0 clog

Z to V implies, one clog can be sacrificed to produce 5 more sandals.

Hence the oppurtunity cost in both cases is same.