Identify a point that is efficient

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Q. Truffle hunter's Taffy Treasures, a small candy store, makes two types of candy: Taffy also Truffles. Truffle hunter's production illustrates the law of increasing opportunity costs.

a. Use a production possibilities frontier to illustrate the production options. Be sure to label your drawing.

b. Identify a point that is efficient. Label the point "A".

c. Identify a point that is inefficient. Label the point "B".

d. Identify a point that is unattainable. Label the point "C".

e. Using your diagram, illustrate the opportunity cost of producing more Taffy. Label your new production level "D". Enlighten your findings.

Reference no: EM1310482

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