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 15 of Z and 45 of X;this combination is:
A)both allocatively and productively efficient.
B)productively efficient.
C)allocatively efficient.
D)neither productively nor allocatively 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 15 of Z and 45 of X;this combination is:
A)both allocatively and productively efficient. 
B)productively efficient. 
C)allocatively efficient. 
D)neither productively nor allocatively efficient.

Quizplus · Accepted Answer

The combination of 15 of Z and 45 of X falls on the production possibility frontier, which means it is productively efficient, but it may not be allocatively efficient. Thus, the answer is (B) productively efficient.

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