The point on the production possibilities curve that is most desirable can be found by
A) estimating the marginal costs of both products in real or physical terms.
B) comparing marginal benefits and marginal costs.
C) determining where least-cost production occurs.
D) calculating where economic growth will be greatest.

Question

Quizplus · Accepted Answer

The most desirable point on the production possibilities curve is the point where marginal benefits equal marginal costs. This point represents the optimal allocation of resources, where the benefits gained from producing one additional unit of a good are equal to the costs of producing it. By comparing marginal benefits and marginal costs, we can determine the point on the production possibilities curve that is most desirable.

The Point on the Production Possibilities Curve That Is Most