When producing at a production efficient point,
A) the opportunity cost of another good is zero.
B) our choice of the goods can be either on or within the production possibilities frontier.
C) we can satisfy our all wants.
D) we face a tradeoff and incur an opportunity cost.

Question

Quizplus · Accepted Answer

Producing at a production efficient point means operating on the production possibilities frontier, where resources are fully and efficiently utilized. At this point, choosing to produce more of one good necessitates producing less of another, hence incurring an opportunity cost.

When Producing at a Production Efficient Point