Question

What does the given points A to F represent?

Situation	Cellphones(units)	Rice(quintals)
A	$0$	$60,000$
B	$1000$	$55,000$
C	$2000$	$48,000$
D	$3000$	$38,000$
E	$4000$	$23,000$
F	$5000$	$0$

• A. Productivity efficient situation
• B. Production at least possible cost
• C. Full use of resources
• D. All of the above

Answer 1

Answer: (D)

All of the above

Points from A to F represents production possibility curve that shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. The cost at each point of PPC representing production of two commodities at varying levels is minimised and efficiency in production is achieved.