Production efficiency occurs when production
A) is on the production possibilities frontier or inside it.
B) is on the production possibilities frontier.
C) is at a point beyond the production possibilities frontier.
D) is at any attainable point.

Question

Quizplus · Accepted Answer

Production efficiency occurs when production is on the production possibilities frontier, indicating that resources are being used in the most efficient way possible, with no way to increase production of one good without decreasing production of another.

Production Efficiency Occurs When Production