Efficiency in the production possibilities model Suppose the fictional country of Shenandoah produces only two goods: millet and handbags. The following graph plots Shenandoah's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A B C D E F

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Efficiency in the production possibilities model

Suppose the fictional country of Shenandoah produces only two goods: millet and handbags. The following graph plots Shenandoah's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F.
 
Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply.
 
 
 
Point
Inefficient
Efficient
Unattainable
A
 
 
 
 
B
 
 
 
 
C
 
 
 
 
D
 
 
 
 
E
 
 
 
 
F
 
 
 
 

 

HANDBAGS (Millions)
100
80
60
2
20
0
O
PPF
10+
C
20
+o
40
+
B
A
+
m
60
MILLET (Millions of bushels)
X^
80
100
?
Transcribed Image Text:HANDBAGS (Millions) 100 80 60 2 20 0 O PPF 10+ C 20 +o 40 + B A + m 60 MILLET (Millions of bushels) X^ 80 100 ?
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The production possibility frontier depicts the alternative combinations of two goods or services that can be produced in a specified time by an economy with the available resources and the technology.

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