-Suppose that, for given resources and production technology, the above table shows the production relationship between soda and pizza. For the sake of simplicity, assume the relationship is linear. Which of the following production possibilities is not efficient?
A) 28 sodas and 3 pizzas
B) 12 sodas and 10 pizzas
C) 20 sodas and 5 pizzas
D) 15 sodas and 5 pizzas

Question

-Suppose that, for given resources and production technology, the above table shows the production relationship between soda and pizza. For the sake of simplicity, assume the relationship is linear. Which of the following production possibilities is not efficient?
A) 28 sodas and 3 pizzas 
B) 12 sodas and 10 pizzas 
C) 20 sodas and 5 pizzas 
D) 15 sodas and 5 pizzas

Quizplus · Accepted Answer

In a linear production possibility frontier, efficiency is achieved when resources are fully utilized. If the relationship is linear, then combinations should lie on the line. If 20 sodas and 5 pizzas are possible, then 15 sodas and 5 pizzas would not be efficient as it suggests underutilization of resources.

-Suppose That, for Given Resources and Production Technology, the Above