Question 1
Why are points inside the production possibilities frontier considered inefficient?
Question 2
What defines productive efficiency in the context of a production possibilities frontier?
Question 3
What happens at a point where marginal benefit is less than marginal cost in allocative efficiency?
Question 4
In scenario F, what is the marginal benefit of having no rabbits?
Question 5
What does moving along the production possibilities frontier involve?
Question 6
What does it mean if a point lies outside the production possibilities frontier?
Question 7
In scenario B, what is the marginal cost of producing the fourth rabbit?
Question 8
In scenario E, what is the marginal cost of producing the first rabbit?
Question 9
In allocative efficiency, what must be compared to determine the best allocation?
Question 10
In the graph of marginal benefit, where is the marginal benefit of the second rabbit?
Question 11
What is allocative efficiency?
Question 12
How is the optimal number of rabbits determined considering marginal benefit and marginal cost?
Question 13
What would you recommend if the marginal cost of producing another rabbit is greater than the marginal benefit?
Question 14
What does the slope of the marginal cost curve in the graph represent?
Question 15
What represents the opportunity cost of producing more rabbits in terms of berries?