Answer: F
Explanation:
Production possibility frontier checks the alternative combination of products that is possible based on available resources and useful technology.
NOTE: Exhibit 2-2 is curved.
Although, in reality most PPF2 are curved, which means that there is an increase in opportunity costs due to the commensurate increase in the number of goods produced. And this is so in most cases.
Therefore, with reference to Exhibit 2-2, if PPF2 is the relevant Production Possibilities Frontier, then point F illustrates inefficiency.
