In a production possibilities frontier, a point inside the frontier is A. productively inefficient. B. productively and allocatively inefficient. C. allocatively efficient. D. productively efficient

The correct answer is option A.

Explanation:

A production possibilities curve shows the maximum possible bundles of two goods, that an economy or firm can produce using its given resources and level of technology.  

A point on the production possibility curve is both productively as well as allocative efficient.  

A point below the frontier is allocatively efficient and attainable but productively inefficient.  

A point above the frontier is unattainable at the current level of resources and state of technology.

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