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c25. In a production possibilities frontier, which of the following would describe the location of an efficient point

of production?and also give reason for your answer

otherwise I will dislike

(A) Just on the inside of the curve or line

(B) On the inside of a curve, but not on the inside of a straight line

(C) Just on the outside of either a curve or a line

(D) On a line or a curve

(E) On a line, but not on a curve

Answer :

The location of an efficient point of production in a production possibilities frontier is typically described by option (D): On a line or a curve.

A production possibilities frontier (PPF) represents the maximum potential output combinations of two goods that an economy can produce given its resources and technology. It shows the trade-off between producing one good over another. The PPF is typically a concave curve or a straight line.

An efficient point of production on the PPF represents the allocation of resources that maximizes the production of goods without wasting any resources. It indicates that the economy is operating at its full productive capacity.

Here's why an efficient point can be located on a line or a curve:

1. On a line: If the PPF is a straight line, it suggests that the opportunity cost of producing one good remains constant as more of the other good is produced. In this case, any point on the line represents an efficient allocation of resources because resources are fully utilized, and there is no waste or inefficiency.

2. On a curve: If the PPF is a concave curve, it indicates that the opportunity cost of producing one good increases as more of the other good is produced. Points on the curve represent efficient allocations where resources are fully utilized. These points demonstrate the trade-off between the two goods, and any movement away from the curve would indicate inefficiency or underutilization of resources.

It's important to note that the exact location of the efficient point within the curve or on the line depends on factors such as the resources available, technological advancements, and the preferences of society. The specific circumstances of an economy will determine the position of the efficient point.

In summary, an efficient point of production can be located on a line or a curve within the production possibilities frontier. These points represent efficient resource allocation and indicate the maximum potential output given the available resources and technology. Therefore, the correct option is D.

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