From any point within the production possibilities frontier,
A) the only way to increase production of one good is to decrease production of the other.
B) it is possible to increase both people's utility.
C) it is possible to increase output of both goods.
D) any move will necessarily decrease production of some good.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum output that can be produced given the available resources and technology. Therefore, any point within the production possibilities frontier represents an efficient allocation of resources. It is possible to increase the output of both goods by using resources more efficiently or by increasing the amount of resources available. This could be achieved by improving technology, increasing investment, or expanding the labor force, among other strategies. Therefore, Option C is the best choice.

From Any Point Within the Production Possibilities Frontier