Figure 2 shows the production possibility frontier for an economy producing only two goods: chickens and cabbages.
Which one of the following statements is true?
From the information given, it is impossible to determine whether point E is allocatively efficient
2 )
From the information given, it is impossible to determine whether point E is productively efficient
3 )
Point E is productively and allocatively efficient
4 )
Point E is productively efficient but allocatively inefficient
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