Consider the production possibilities frontier displayed in the figure shown.Which points are efficient and attainable with existing resources?
A)Only point B.
B)Only point A.
C)Points A and D.
D)Points A,C,and D.

Question

Consider the production possibilities frontier displayed in the figure shown.Which points are efficient and attainable with existing resources?
A)Only point B. 
B)Only point A. 
C)Points A and D. 
D)Points A,C,and D.

Quizplus · Accepted Answer

Point B is unattainable with existing resources since it lies outside the production possibilities frontier. Point A is attainable but inefficient because it does not utilize all available resources. Point C is unattainable with existing resources because it lies beyond the frontier. Point D is both efficient and attainable with existing resources as it lies on the frontier. Therefore, the best choice(s) are points A and D, or choice letter C.

Consider the Production Possibilities Frontier Displayed in the Figure Shown