The letter that would represent the most allocatively efficient point if a country had just signed a large international trade deal to export ethanol is F.
What is allocative efficiency?
Allocative efficiency refers to the specific choice of the mix of production along the production possibilities frontier that achieves the best production outcome.
Based on the preferred export of a large quantity of ethanol, the best allocative efficiency that the country can achieve would be to produce more corn instead of tomatoes, which it can import at a cheaper rate.
Thus, the letter that would represent the most allocatively efficient point if a country had just signed a large international trade deal to export ethanol is F.
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