Answer
It is not making efficient use of its available resources.
Work Step by Step
This point is inside of the production possibilities curve and is therefore less efficient than any of the combinations lying on the curve itself.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 1 - Limits, Alternatives, and Choices - Problems - Page 21: 5c
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