Question

Mario's, a pizza and pasta​ producer, experiences increasing opportunity cost. draw a production possibilities frontier for​ mario's that illustrates this fact. label it ppf. draw a point that is attainable. label it attainable. draw a point that is not attainable. label it unattainable. unattainable points are​ ______.

a. outside the ppf
b. inside the ppf but not on the ppf
c. on the ppf but not inside the ppf
d. both outside and on the pp

Answer 1

a. outside the PPF

Step-by-step explanation:

PPF is bowed outward, so that as the quantity of pizza and pasta produced increases, it becomes more costly to produce another unit of pizza.

The PPF is a boundary between the attainable and unattainable combinations of pizza and pasta.

Points inside the PPF and on the PPF are attainable and points outside the PPF are unattainable.

Unattainable points are outside the PPF.

Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones.

Answer 2

Unattainable points are​ outside the PPF. The PPF refers to the Production Possibilities Frontier. This is set by the economic standing of a country and a country is not able to perform and produce outside of their set PPF. Due to this, all unattainable points are located outside of the PPF.