Production Possibility Frontier – Country X A 8 G B 15,7 10, 6 Watches .

Consider the graph of the production possibility frontier for country X. What would be a combination of watches and MP3 players that would meet the allocative efficiency of a country?

Any combination on the production possibilities frontier that brings the highest level of satisfaction to meet the needs of the people in the economy.

Combinations C or D because they represent a balanced quantity of watches and MP3 players.

Point G combination because it represents the combination with the highest number of watches and MP3 players.

Production Possibility Frontier – Country XA8GB15,710, 6Watches . daily productionCLL15,410, 4D18, 2m20, 0UT10152025MP3 Players – Daily production

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