of all the points on the production possibilities curve only one point represents an efficient point
Production–possibility frontier In the PPF, all points on the curve are points of maximum productive efficiency (no more output of any good can be achieved from the given inputs without sacrificing output of some good); all points inside the frontier (such as A) can be produced but are productively inefficient; all points outside the curve (such as X) cannot be produced with the given, existing resources.[2] Not all points on the curve are Pareto efficient, however; only in the case where the marginal rate of transformation is equal to all consumers' marginal rate of substitution and hence equal to the ratio of prices will it be impossible to find any trade that will make no consumer worse off.[3]
Production function The inputs to the production function are commonly termed factors of production and may represent primary factors, which are stocks. Classically, the primary factors of production were Land, Labour and Capital. Primary factors do not become part of the output product, nor are the primary factors, themselves, transformed in the production process. The production function, as a theoretical construct, may be abstracting away from the secondary factors and intermediate products consumed in a production process. The production function is not a full model of the production process: it deliberately abstracts from inherent aspects of physical production processes that some would argue are essential, including error, entropy or waste, and the consumption of energy or the co-production of pollution. Moreover, production functions do not ordinarily model the business processes, either, ignoring the role of strategic and operational business management. (For a primer on the fundamental elements of microeconomic production theory, see production theory basics).