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The Production Possibilities Frontier


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Inefficient and Infeasible Points
The Production Possibilities Frontier
Combinations of output that are inside the production possibilities frontier represent inefficient production, since an economy could produce more of both goods (i.e. move up and to the right on the graph) by reorganizing resources.

On the other hand, combinations of output that lie outside the production possibilities frontier represent infeasible points, since the economy doesn't have enough resources to produce those combinations of goods.

Therefore, the production possibilities frontier represents all points where an economy is using all of its resources efficiently.

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