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C - In the process of production a simple analytical tool...

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(C) Production Possibility Frontier and Efficiency: Efficiency is an important condition to  be fulfilled during the production of goods and services.  Economics  provides an  efficiency test in all the possible economic activities. Only when the economic agents  are  acting  efficiently (maximizing or minimizing accordingly) can their behavior be called  rational and only then can they be subjected to a scientific inquiry.
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Unformatted text preview: In the process of production, a simple analytical tool is employed in the form of a production possibility frontier (P.P.F) and a related schedule. This can be illustrated as: Production Schedules Units of X Units of Y MRS 20-1 18 (1 - 2) 2 15 (1 - 3) 3 11 (1 - 4) 4 6 (1 - 5) 5 (1 - 6)...
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