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The Efficient Frontier is a graph that shows the portfolio (combination of stocks and bonds) that would give you the highest return at each level of risk. Any point above that is unattainable without a change in risk, any point below is inefficient (that is you could receive greater return for that mix of stocks and bond then you are currently receiving).
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What tool helps a producer set up an efficient system of production?
a production possibilities frontier graph
Why can production take place on or inside the frontier?
This is known as the law of diminishing returns and can occur because factor on the frontier is deemed to be production efficient and production inside frontier.
Producers can use a production possibilities frontier for what purposes?
A production possibilities frontier, or PPF, is a curve graph which shows combinations of two or more goods or services. The graph shows these goods or services being produced while using a maximum amount of resources.
Which tools helps a producer set up an efficent systemof production?
A production possibilities frontier graph
What do you call an economy working at its most efficient production level?
PPF- product possibility frontier.
