This graph is a fantastic example of how Production Possibilities work. All of the points except 'W' are both attainable and efficient. Point W is unattainable, for it might represent a need for a technology that does not yet exist. And, as pointed out in the graph by the yellow shading, any point under the curve is attainable but inefficient. This just means that the company or business isn't using their resources as well as they can, or are lacking resources. Great job Chris!
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ReplyDeleteThis graph is a fantastic example of how Production Possibilities work. All of the points except 'W' are both attainable and efficient. Point W is unattainable, for it might represent a need for a technology that does not yet exist. And, as pointed out in the graph by the yellow shading, any point under the curve is attainable but inefficient. This just means that the company or business isn't using their resources as well as they can, or are lacking resources. Great job Chris!
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