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if a production combination in a country's production possibilities diagram is inside the production possibilities frontier,...

if a production combination in a country's production possibilities diagram is inside the production possibilities frontier, and the country be producing on its production on its production efficiency locus in the Edgeworth box diagram? why or why not

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Answer #1

If the current production combination lies inside the production possiblity frontier, then it means the country is under producing and can still produce more. This means it is lacking efficiency in production and thus this point will lie not on the efficiency locus in the Edgeworth box.

This is because efficiency is not being maximized.

> Helpful! Explanations with figures?

Ujah Julius C Sun, Feb 6, 2022 1:20 PM

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