Assume Econville’s production possibility frontier divides goods into capital goods and consumer goods and that currently the country is both allocatively and productively efficient. How is this shown on the production possibility frontier?
a. Econville is operating inside its production possibility frontier.
b. Econville is operating outside its production possibility frontier.
c. Econville is operating on the production possibility frontier.
d. It is not possible to show allocative and productive efficiency on the production possibility frontier.
c. Econville is operating on the production possibility frontier.
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