To analyze reason behind the impossible situation of producing at point E which is outside the production possibilities for wood.
Explanation of Solution
The point at the PPF shows the maximum amount of goods that an economy can produce with its existing resources. The point outside the PPF i.e point E in the diagram shows the combination of bookshelves and tables that requires more resources than carpenter has. So, carpenter cannot produce 6 bookshelves and 4 tables.
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