What does a point on a country's production possibilities frontier represent?

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A point on a country's production possibilities frontier represents a combination of two goods that an economy can produce using all available resources and technology. This means that the economy is operating at maximum efficiency and is achieving the highest possible level of output for those two goods. Any point inside the production possibilities frontier indicates that the economy is not using all available resources and technology, while any point outside the frontier is currently unattainable with the current resources and technology.

What Does a Point on a Country's Production Possibilities Frontier