Maximum Attainable Output on PPC

Steps:

• Identify the PPC curve, which shows all efficient production combinations of two goods.
• Locate points relative to the curve: on the curve are maximum attainable outputs; inside are inefficient; outside are unattainable.
• Examine Y-axis intercepts or points to find the highest Y output on or inside the curve.
• Select the point with the greatest Y value that lies on the curve.

Why B is correct:

• Point B lies on the PPC, representing the efficient frontier where Y output is maximized given resource constraints, per the definition of opportunity cost in PPC analysis.

Why the others are wrong:

• A: Lies inside the PPC, indicating underutilized resources and lower Y output than possible.
• C: Lies outside the PPC, unattainable with current technology and resources.
• D: On the PPC but at a lower Y level, trading off more X for less Y.

Final answer: B