On a production possibilities frontier, when is production efficient?
A) if the production point is on the frontier
B) if the production point is outside the frontier
C) if the production point is on or inside the frontier
D) if the production point is inside the frontier

Question

Quizplus · Accepted Answer

Production is efficient when it is on the production possibilities frontier, indicating that resources are being used in the most efficient way possible to produce a mix of goods and services. Points inside the frontier indicate underutilization of resources, while points outside are unattainable with current resources or technology.

On a Production Possibilities Frontier, When Is Production Efficient