Questions
Questions

Test:exam1

Single choice

Part 1The figure shows the production possibilities frontier for​ Mario's, a pizza and pasta producer.Draw a point at which the firm achieves production efficiency. Label it Efficient.Draw a point that is attainable but inefficient. Label it Inefficient. Click toenlargegraph Part 1What is the outcome when production is​ efficient?When production is​ efficient, ______. A. ​Mario's can produce more pasta only by producing less pizza B. ​Mario's can produce more pasta without producing less pizza C. there is no tradeoff between pizza and pasta D. some resources are unused or misallocated Part 1 0246810120102030405060708090100Pizza (number per hour)Pasta (dishes per hour)PPFPPF Edit coordinates interactive graph​>>> Draw only the objects specified in the question.

Options
A.A. ​ Mario's can produce more pasta only by producing less pizza
B.B. ​ Mario's can produce more pasta without producing less pizza
C.C. there is no tradeoff between pizza and pasta
D.D. some resources are unused or misallocated
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Step-by-Step Analysis
First, let me restate the question and options in my own words to set the stage: The graph shows Mario's production possibilities frontier (PPF) for pizza and pasta. We are to identify what happens when production is efficient, and select among the following statements: A) Mario's can produce more pasta only by producing less pizza; B) Mario's can produce more pasta without producing less pizza; C) there is no tradeoff between pizza and pasta; D) some resources are unused or misallocated. Ana......Login to view full explanation

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