Although all points on the production possibilities frontier are efficient, that alone does not determine which point is "best" for the society.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum output that a society can produce given its resources and technology. However, it does not take into account factors such as consumer preferences, income distribution, and externalities. Therefore, different points on the production possibilities frontier may be preferred by society depending on its values and goals.

Although All Points on the Production Possibilities Frontier Are Efficient