If Harold must decrease production of some other good to increase production of good X,then Harold
A)is producing on his production possibilities frontier.
B)is producing outside his production possibilities frontier.
C)is producing inside his production possibilities frontier.
D)prefers good X to any other good.
E)has a linear production possibilities frontier.

Question

Quizplus · Accepted Answer

Harold must be producing on his production possibilities frontier (PPF) because he faces a trade-off between producing good X and other goods, indicating that he is utilizing all available resources efficiently.

If Harold Must Decrease Production of Some Other Good to Increase