Consider a production possibility frontier with books and tables.A combination of 1000 books and 500 tables is on the frontier.Which of the following are true?
i.Production of 700 books and 400 tables is attainable but inefficient.
ii.Production of 1000 books and 600 tables is unattainable.
iii.Production of 500 books and 1000 tables is inside the frontier.
A) i and ii
B) i, ii and iii
C) i and iii
D) ii and iii
E) i only

Question

Quizplus · Accepted Answer

The combination of 1000 books and 500 tables is on the frontier, indicating maximum efficiency. Producing 700 books and 400 tables is attainable but inefficient as it is below the frontier. Producing 1000 books and 600 tables is unattainable as it exceeds the frontier.

Consider a Production Possibility Frontier with Books and Tables