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Ppf Classification

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Ppf Classification


1. **State the problem:** We need to classify points A, B, C, D, E, and F as inefficient, efficient, or unattainable based on their positions relative to the Production Possibility Frontier (PPF). 2. **Understand the PPF:** The PPF curve shows the maximum possible output combinations of telephoto lenses and rye. Points on the curve are efficient (maximum production), points inside the curve are inefficient (resources underutilized), and points outside the curve are unattainable (beyond current capacity). 3. **Analyze each point:** - Point A (20, 40): On or near the curve, so **efficient**. - Point B (40, 40): On or near the curve, so **efficient**. - Point C (60, 20): On or near the curve, so **efficient**. - Point D (70, 40): Outside the curve, so **unattainable**. - Point E (50, 60): Outside the curve, so **unattainable**. - Point F (40, 10): Inside the curve, so **inefficient**. 4. **Final classification:** | Point | Inefficient | Efficient | Unattainable | |-------|-------------|-----------|--------------| | A | | X | | | B | | X | | | C | | X | | | D | | | X | | E | | | X | | F | X | | |