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5. Which point(s) on the curve represents an efficient economy

5. Which point(s) on the curve represents an efficient economy-example-1
User CAFEBABE
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1 Answer

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26 votes

According to the problem, we need to look for points on the curve.

• Points B, C, and D are on the curve.

However, which of them is more efficient?

In this problem, efficiency is represented by the equal distance from each axis. That is, the point which is equally distante from the origin and each axis, that point represents the most efficient.

Having said that, point D is the most efficient.

Because it's equally distant from each axis and forms the greatest area, as you can observe in the image below.

5. Which point(s) on the curve represents an efficient economy-example-1
User Javros
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