Economics Production Possibility Frontier Questions Medium
A feasible point on the Production Possibility Frontier (PPF) refers to a combination of goods or services that can be produced using the available resources and technology. In other words, it represents a point where the economy is utilizing all of its resources efficiently. Feasible points lie directly on or inside the PPF curve.
On the other hand, an efficient point on the PPF represents a combination of goods or services that maximizes production given the available resources. It refers to a point on the PPF curve where it is not possible to produce more of one good without sacrificing the production of another good. In other words, it represents an optimal allocation of resources. Efficient points lie directly on the PPF curve.
To summarize, the main difference between a feasible and an efficient point on the PPF is that a feasible point represents a combination of goods or services that can be produced, while an efficient point represents a combination that maximizes production given the available resources.