If production point is inside the production possibilities frontier
A) production is inefficient.
B) production is in the ʺunattainableʺ region.
C) it is not possible to produce more of both goods
D) in order to produce more of one good, less of the other must be produced.

Question

Quizplus · Accepted Answer

If the production point is inside the production possibilities frontier, it means that the economy is not utilizing all its resources efficiently to produce the maximum possible output of goods. This is a situation of inefficiency because the resources are not being used to their full potential.

If Production Point Is Inside the Production Possibilities Frontier