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.
The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%
