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Topic: Business
Number of pages / Number of words: 7 / 1742
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EH as the maximum utilization of his study hours depending on various combination of hours spent on history and economics and hence his relative grades in the same.

Here E denotes the point the where all study time is allocated to Economics

And H denotes the point the where all study time is allocated to History

In order to maximise his grades in both the subjects , a point on the curve EH will denote the best possible combination where full resources are utilised...


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This point U denotes the underutilization of resources.

Now by increasing the input from 10 hours to 15 hours in a situation where Diligent utilises all 15 hrs efficiently, an outward shift in the PPF takes place to E'H'.

This implies that Diligent is putting in more effort into his studies, and his expected results would be much better...


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