Locating a point on a utilities possibilities frontier gives you information about:
A) both equity and efficiency.
B) equity but not efficiency.
C) efficiency but not equity.
D) profitability but not efficiency.

Question

Quizplus · Accepted Answer

Locating a point on a utilities possibilities frontier gives you information about efficiency but not equity. The utilities possibilities frontier represents the efficient combinations of outputs that a utility company can produce with its available inputs. The location of a specific point on the frontier shows the trade-off between producing different combinations of outputs efficiently. However, it does not provide information about whether the distribution of those outputs is equitable or not.

Locating a Point on a Utilities Possibilities Frontier Gives You