With reference to the Production Possibility diagram shown below: i. Are any points shown on the graph efficient from a production point of view? ii. How would you assess whether any of the same points are efficient from an allocation point of view? iii. What is the cost if we increase wine production from 6 units to 9 units? iv. How can the economy reach wine and grain production given by point b?

 

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Grain 18 15 12 9 6 3 0 T ia. 1 b. - L-L L 1 1 3 6 9 12 15 18 Wine NetMBA.com Grain 18 15 12 9 6 3 0 T ia. 1 b. - L-L L 1 1 3 6 9 12 15 18 Wine NetMBA.com

Answer rating: 100% (QA)

1 i Yes point b is equally efficient from a production point of view in the graph ii To assess if the given points on the graph are efficient from an allocation point of view we will need to consider ... View the full answer