Question

The difference between a feasible outcome and an efficient outcome is?

a) A feasible outcome is any outcome that is possible, while an efficient outcome is an outcome that occurs at the intersection of a feasible outcome and an indifference curve

b) An efficient outcome is any outcome that is possible, while a feasible outcome is an outcome that occurs at the intersection of an efficient outcome and an indifference curve

c) Both a feasible and efficient outcome are found within the feasible frontier

d) A feasible outcome is any outcome that is possible, while an efficient outcome is an outcome that is ideal, but not necessarily possible

e) A feasible outcome is always efficient but an efficient outcome is not always feasible

Answer 1

If feasible outcome is the one which can be achieved and of course it is possible.

An efficient outcome, on the other hand, is an outcome that occurs at the intersection of a feasible outcome and indifference curve and that is the most desirable outcome.

Hence, the difference between a feasible outcome and an efficient outcome is that a feasible outcome is any outcome that is possible, which an efficient outcome is any outcome that occurs at the intersection of a feasible outcome and an indifference curve.

Hence, option a is correct.