In a production possibilities table,the most-valued or optimal point for society is determined by:
A) a combination of products at the midpoint of the table.
B) a combination of products at the ends of the table.
C) the equality of marginal benefits and marginal costs.
D) the maximization of opportunity costs.

Question

Quizplus · Accepted Answer

The most-valued or optimal point for society in a production possibilities table is determined by the equality of marginal benefits and marginal costs. At this point, society is able to produce the combination of goods and services that maximizes its overall well-being. This is because the marginal benefit of producing one more unit of a good or service is exactly equal to the marginal cost of producing that unit. Therefore, there is no more room for improvement and society is producing goods and services in the most efficient way possible.

In a Production Possibilities Table,the Most-Valued or Optimal Point for Society