Answer to Question #256355 in Economics of Enterprise for nebeyu

Question

any point lying on the product possibility curve indicate

Answer 1

Solution:

The production possibility curve depicts all possible combinations of two commodities that can be produced in an economy given the resources and technology available.

Efficiency can be found at any point on the product possibility curve. The points on the PPC represent the points in a country's economy where resources are being allocated most efficiently in order to produce as many goods as possible. The points represent the most cost-effective use of economic resources.