(Table: Production of Good Z and Good X in Urbanville) Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing 15 of Z and 45 of X;this combination is:

A) both allocatively and productively efficient.
B) productively efficient.
C) allocatively efficient.
D) neither productively nor allocatively efficient.

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Jibril Fuller · Accepted Answer

Final Answer : B, Explanation :  The combination of 15 of Z and 45 of X falls on the production possibility frontier, which means it is productively efficient, but it may not be allocatively efficient. Thus, the answer is (B) productively efficient.

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