100 200 300 400 500 600 700 800 900 1000 Tshrts SolutionFALS

100 200 300 400 500 600 700 800 900 1000 T-shrts

Solution

FALSE .

Point B is on the boundary of production possibility frontier . Points on the PPF shows the maximum possible combinations of shoes and T shirts that can be produced given the resource constraint in the country . So point B is efficient . Any point inside the PPF is inefficient .