Identify the point or points for which the following is true: The economy is producing efficiently.
The production possibility curve shows the combination of goods produced in a country using all the available resources efficiently. Its slope calculates the amount of 1 good a company is ready to give up in order to produce one extra unit of another good.
If the goods are produced at the Production possibility curve then the resources are utilized efficiently. If the allocation is below the Production possibility the resources are not utilized to their full potential hence inefficient. If the allocation is beyond the production possibility curve then it is unattainable as the nation doesn't have enough resources to reach that point hence it is unattainable.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
