Analyzing Suboptimal Choices
An individual is choosing between hours of free time and bushels of grain, constrained by a feasible production frontier. They select a combination, Point B, which lies on the feasible frontier. At Point B, the individual's personal valuation is such that they are willing to give up 3 bushels of grain for one more hour of free time. However, the feasible frontier shows that at this point, they only have to give up 2 bushels of grain to gain one more hour of free time. Explain why Point B is a suboptimal choice and describe a change in the allocation of free time and grain that would increase the individual's satisfaction.
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