If Sam is producing at a point inside his production possibilities frontier,then he
A)can increase production of both goods with zero opportunity cost.
B)is fully using all his resources and allocating his resources to their best use.
C)must be doing the best he can with limited resources.
D)is unaffected by costs and technology.
E)has a high opportunity cost of moving from this point.

Question

Quizplus · Accepted Answer

Producing inside the production possibilities frontier indicates that not all resources are being fully utilized, so it's possible to increase production of both goods without sacrificing the production of one for the other, hence with zero opportunity cost.

If Sam Is Producing at a Point Inside His Production