Question

A graph titled Production of Raj apostrophe s Bakery has Quantity of bagels produced on the x-axis, from 0 to 250 in increments of 50, and Quantity of doughnuts produced on the y-axis, from 0 to 500 in increments of 100. Point A is at (50, 500), Point B is at (150, 300), and point C is at (250, 100). A line with negative slope is drawn to connect the points. Point Y is below the line, and point X is above the line.
Refer to the graph and use the drop-down menu to answer each question.

At what point is Raj not using all of his resources?

At what point would Raj be using more than his available resources?

Answer 1

Not using all resources: Point Y (below/inside the production possibility frontier).

Using more than available resources: Point X (above/outside the production possibility frontier).