Answer to Question #175207 in Microeconomics for Natasha

Question

Using a properly laballed production possibility frontier, distinguish between maximum attainable combinations, attainable but inefficient combinations of the production of rice and maize

Answer 1

By doing so, it defines productive efficiency in the context of that production set: a point on the frontier indicates efficient use of the available inputs (such as points B, D and C in the graph), a point beneath the curve (such as A) indicates inefficiency, and a point beyond the curve (such as X) indicates