If on a production possibility frontier, you have the ability to raise production of both items at the same time, this indicates that resources were previously distributed in an inefficient manner.
This is further explained below.
<h3>What is
production?</h3>
The manufacturing process, in general, requires bringing together a variety of distinct inputs, both material and immaterial, in order to generate something that can be eaten. These inputs may be divided into two categories: material and immaterial.
When we speak about value creation, what we mean is the process of generating output, such as a product or service, that has value and contributes to the total usefulness of people. This might be anything from an item to service.
In conclusion, an indicator that resources were previously distributed in an inefficient manner is if, on a production possibilities frontier, you have the ability to raise production of both items at the same time. This shows that you have the ability to raise production on a production possibilities frontier.
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