the free lunch portion on the realistic PPF is found only wh

the \"free lunch portion\" on the realistic PPF is found

only where maximum Z is acquired

at the upward-sloping portion of the PPF

at the downward-sloping portion of the PPF

at maximum H

none of the above

Solution

The correct answer is option c that is downward sloping portion of the PPF. The production possibility frontier (PPF) means the production at limited sources and within limited time period. In case of free lunch portion, the output generated in terms of money from preparing lunches at a certain time period shows downward slope. There is no money generated from free lunch so the PPF graph line shows a downward slope. The cost of labour, cost of materials used, cost of packing and delievery are not recoveerd by putting free lunch. If, there is cost of lunch to the customers then the shope could shift upwards.