Answer to Question #72675 in Other Economics for Tajinder Bajwa
Medical Care 20 40 60 80
The production possibilities curve is the possible tradeoff of producing combinations of goods with constant technology and resources per unit time.
The opportunity cost of the first 20 units of medical care is 40 units of prisons.
The opportunity cost of the last 20 units (from 60 to 80) of medical care is also 40 units of prisons.
A point F (40 units of medical care, 60 units of prisons) is inside the curve, so it represents inefficient combination of alternatives.
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