Equilibrium occurs where a nation's community indifference curve is _________________ to its production possibilities frontier.
A)parallel
B)perpendicular
C)tangent
D)equal

Question

Quizplus · Accepted Answer

Equilibrium occurs where the community indifference curve is tangent to the production possibilities frontier. This means that the slope of the community indifference curve at the point of equilibrium is equal to the slope of the production possibilities frontier at that same point. This ensures that production is allocated efficiently and in line with consumer preferences.

Equilibrium Occurs Where a Nation's Community Indifference Curve Is _________________