The ice cream shop would operate inefficiently if it produced 6 gallons of both flavors.
The graph shown is known as the production possibility curve. It is a curve that shows the two combination of goods that a firm can produce given the firm's resources.
Points on the curve show that the firm is producing efficiently. This points on the graph given are points B, D, and C. The most efficient point on the curve is D. This is because it is at this point that the highest units of both flavors are produced.
Point X is not attainable. This is because it is outside the curve. It means that the company does not have enough resources to produce at this point.
Point A means that the firm is not producing efficiently. It is not fully utilizing its resources. Point A means the company is producing 6 units of chocolates and strawberry.
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