Question

PointProduction chocolate barsProduction cans of colaA 0 100B 10 90C 20 70D 30 40E 40 0The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE?A.Producing 0 chocolate bars and 100 cans of cola is both attainable and efficient.B.Producing 20 chocolate bars and 80 cans of cola is attainable but inefficientC.Producing 30 chocolate bars and 38 cans of cola is both attainable, with an inefficientD.Producing 40 chocolate bars and 0 cans of cola is both attainable and inefficient

Answer 1

First look and see if each of the values are true (attainable) before looking at efficiency

A.Producing 0 chocolate bars and 100 cans of cola is both attainable and efficient.

This is attainable

B.Producing 20 chocolate bars and 80 cans of cola is attainable but inefficient

This is not attainable

C.Producing 30 chocolate bars and 38 cans of cola is both attainable, with an inefficient

This is attainable

D.Producing 40 chocolate bars and 0 cans of cola is both attainable and inefficient

This is attainable

Now lets looks at efficiency

efficient when it is producing at the lowest point on the graph

Inefficient is below the graph

D should be efficient

A should be efficient

I am not sure why C is wrong