Figure 16.2.2
-Refer to Figure 16.2.2 above. Which allocation is efficient?
A) A and B
B) B and C
C) C and D
D) D only

Question

Figure 16.2.2
-Refer to Figure 16.2.2 above. Which allocation is efficient?
A) A and B 
B) B and C 
C) C and D 
D) D only

Quizplus · Accepted Answer

Allocation C is efficient because it lies on the production possibility frontier, where the maximum output of both goods is achieved. Allocations A and B involve underutilization of resources, while Allocation D represents an unattainable combination with the given resources.

Figure 16.2.2 -Refer to Figure 16.2.2 Above. Which Allocation Is Efficient