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A production possibilities frontier is shown below (Z, Home Goods, on the vertical axis; H, Health, on the horizontal axis). Suppose that the individual is
A production possibilities frontier is shown below (Z, "Home Goods," on the vertical axis; H, "Health," on the horizontal axis). Suppose that the individual is producing the combination associated with point B, but they prefer to be at point C. Given this information we might say that this combination is V C E A D C productively efficient and allocationy efficient. productively efficient but allocationy inefficient. productively inefficient, but allocationy efficient. O productively inefficient and allocationy inefficient
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