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

Question

Quizplus · Accepted Answer

This situation describes a point on the production possibility frontier (PPF), where resources are fully utilized, and producing more of one good requires sacrificing some of the other, indicating efficiency.

Consider a Country That Produces Only Two Goods: Parrots and Iguanas.Suppose