the figure above shows the production possibilities frontier for a country. a combination of 3 million…
the figure above shows the production possibilities frontier for a country. a combination of 3 million gallons of milk and 3 million gallons of ice cream is\na) attainable and production inefficient.\nb) unattainable.\nc) unattainable and production efficient.\nd) attainable and production efficient.\ne) more information is needed to determine if the point is attainable or not.
Answer
Brief Explanations:
The production - possibilities frontier (PPF) shows the maximum combinations of goods that can be produced given available resources and technology. Points outside the PPF are unattainable with current resources and technology. Since the combination of 3 million gallons of milk and 3 million gallons of ice - cream lies outside the given PPF, it is unattainable. Production - efficiency is related to points on the PPF, and since the point is outside, we cannot discuss its production - efficiency in the context of current resources. But generally, points on the PPF are production - efficient.
Answer:
unattainable.