Chapter 1R, Problem 11MCQ

To determine

The question requires us to determine the efficient combination of output.

Explanation of Solution

The following graph represents the PPC for potatoes and fish in the Atlantis economy:

  

Atlantis can produce any combination of these two products which lies on the production possibility curve itself. Any combination on the PPC represents an efficient combination in the economy.

So, the only possible combination from the given option is (1000, 0) i,e 1000 pounds of potatoes and 0 pounds of fish (point A) lies on the PPC represents the efficient combination.

Thus, option “a” is correct.

Economics Concept Introduction

The production possibility curve (PPC) represents the all possible combination of two goods that can be produced by using the given resources in an economy.