What does Point C represent in the production possibilities curve?

Point C on the production possibilities curve represents inefficiency in resource allocation. This means that the economy is not utilizing its resources to their full potential. Resources may be available but are not being employed in a way that maximizes production.

In a typical production possibilities curve, points on the curve indicate efficient production where resources are fully employed, while points inside the curve, such as Point C, signify that not all resources are being effectively utilized. This could be due to various factors such as unemployment, underemployment, or other structural inefficiencies in the economy. Thus, Point C indicates that the economy could produce more goods and services if it were to improve its resource allocation.