Using the graph of a production possibilities frontier PPF b

Using the graph of a production possibilities frontier (PPF) below. Please answer the question that below. Which point demonstrates productive efficiency? A B C D At which point on the graph is it possible to produce more tangerines without reducing the quality of bananas that are also produced? A B C D

Solution

Ans 1=c

Ans 2=a

A production possibility frontier (PPF) depicts the maximum possible output combinations of two goods/ services an economy can obtain when all resources are fully and efficiently employed

Opportunity Cost and PPF