Use the following to answer question:
-(Table: Production of Good Z and Good X in Urbanville)Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing 5 of Z and 50 of X;this combination is:
A)feasible but inefficient.
B)feasible and efficient.
C)not feasible but efficient.
D)neither feasible nor efficient.

Question

Use the following to answer question: 
-(Table: Production of Good Z and Good X in Urbanville)Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing 5 of Z and 50 of X;this combination is:
A)feasible but inefficient. 
B)feasible and efficient. 
C)not feasible but efficient. 
D)neither feasible nor efficient.

Quizplus · Accepted Answer

The production combination of 5 Z and 50 X falls on the production possibility frontier, so it is feasible. However, it is inefficient because there are other production combinations that could produce more of either good without sacrificing the production of the other good. Therefore, the best choice would be to produce at a point on the production possibility frontier that is efficient.

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