Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient? A) 50 Food and 360 Clothes       B) 170 Food and 144 Clothes       C) 320 Food and 48 Clothes       D) 440 Food and 144 Clothes

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient?

A) 50 Food and 360 Clothes
 
 
 
B) 170 Food and 144 Clothes
 
 
 
C) 320 Food and 48 Clothes
 
 
 
D) 440 Food and 144 Clothes
Clothes 1
400
360
264
144
48
50
170
320
440
500
Food
Transcribed Image Text:Clothes 1 400 360 264 144 48 50 170 320 440 500 Food
Expert Solution
Step 1

The point which lies on the production frontier path is feasible as well as efficient. 

In this question, the production frontier path is a straight line. So all the points on this line are feasible and efficient. 

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