When producing at a point of production efficiency,
A)the quantity of goods produced can be either on or inside the production possibilities frontier.
B)a tradeoff occurs.
C)the opportunity cost of producing goods other than those measured on the axes of the production possibilities frontier is zero.
D)resources are either wasted or misallocated.
E)all wants are satisfied.

Question

Quizplus · Accepted Answer

When producing at a point of production efficiency, a tradeoff occurs. This means that in order to produce more of one good, some of the resources used to produce that good have to be diverted away from the production of another good. This tradeoff is illustrated by the downward slope of the production possibilities frontier.

When Producing at a Point of Production Efficiency