QUESTION

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a. The graph below shows a production possibility frontier (PPF) for cheese and bread. Place each point to illustrate the indicated situations. \begin{tabular}{|c|c|} \hline A & efficient and maximum production of checse \\ \hline B & efficient with a high opportunity cost for cheese \\ \hline C & inefficient output combination \\ \hline D & efficient with a high opportunity cost for bread \\ \hline B & inefficient with no opportunity cost for bread \\ \hline F & efficient and maximum production of bread \\ \hline C & unattainable production combination \\ \hline \end{tabular} b. Assume point D represents the socially optimal point.


b. Assume point D represents the socially optimal point. Point D illustrates normative efficiency. allocative efficiency. marginal efficiency. opportunity efficiency.

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MNCVCS The First Answerer