Please help Efficiency in the production-possibilities model Suppose Germany pro
ID: 1186578 • Letter: P
Question
Please help
Efficiency in the production-possibilities model Suppose Germany produces wheat and digital cameras. The following graph shows Germany's current production possibilities frontier (PPF), along with six output combinations (black X symbols) labeled A to F. Which pomts on the graph represent output combinations that are inefficient? Which points on the graph represent output combinations that are efficient in production? Which points on the graph represent output combinations that are not feasible?Explanation / Answer
a) Points C and F represent the points at which production is most efficient
b)Points A and D demonstrate the point at which resources are not being used efficiently in the production of both goods
c)points E and B demonstrate an output that is not attainable with the given inputs. In other words which is not feasible