00:01
So here we've got a couple questions out of a micro principles course.
00:04
And so my argument is that points on a production possibilities curve are efficient, right? and that is d, right? let's remember what a production possibilities curve is, right? if a society is making a choice between x and y, the ppc is the line between what is.
00:31
Is impossible and possible.
00:36
So on the ppc is possible with no waste, right? and that's what we mean by efficient.
00:44
All this other stuff, price ceilings, price floors, price ceilings, all of that is, oh, sorry, i didn't realize there are four choices, efficient and possible.
00:54
Because anything that's on the frontier of the production possibilities frontier is possible by definition, right? so it would be both efficient and possible...