Production efficiency is achieved when
A)the production possibilities frontier shifts outward at a constant pace.
B)there are no tradeoffs.
C)all resources are equally productive in all activities.
D)resources are not equally productive in all activities.
E)we produce goods and services at the lowest possible cost.

Question

Quizplus · Accepted Answer

Production efficiency is achieved when we produce goods and services at the lowest possible cost. This means that we are using our resources in the most efficient way possible, minimizing waste and maximizing output. It does not necessarily require an outward shift of the production possibilities frontier, nor does it imply that there are no tradeoffs or that all resources are equally productive in all activities. Rather, it is about using resources in the most effective and efficient way to achieve maximum productivity.

Production Efficiency Is Achieved When