When producing at a point of production efficiency,
A)the quantity of goods produced can be either on or inside the production possibilities frontier.
B)all wants are satisfied.
C)the opportunity cost of producing goods other than those measured on the axes of the production possibilities frontier is zero.
D)a tradeoff occurs.
E)resources are either wasted or misallocated.

Question

Quizplus · Accepted Answer

Producing at a point of production efficiency means that an economy is operating on its production possibilities frontier (PPF), where producing more of one good requires sacrificing some amount of another good, hence a tradeoff occurs. This reflects the concept of opportunity cost, where choosing one option means forgoing the next best alternative.

When Producing at a Point of Production Efficiency