Consider a country that produces only two goods: kayaks and coconuts.Suppose it is possible for this country to increase its production of kayaks without producing fewer coconuts.In this case, its current output combination is efficient.

Question

Quizplus · Accepted Answer

If the country can increase the production of kayaks without reducing the production of coconuts, it indicates that the current output combination is not efficient, as there are unused resources or inefficiencies in the production process.

Consider a Country That Produces Only Two Goods: Kayaks and Coconuts.Suppose