Production efficiency occurs when production .
A) is at a point beyond the production possibilities frontier
B) is on the production possibilities frontier
C) is at any attainable point
D) is on the production possibilities frontier or inside it

Question

Quizplus · Accepted Answer

Production efficiency occurs when production is on the production possibilities frontier, meaning that all available resources are being efficiently utilized to produce the maximum possible output of goods and services. At any point inside the frontier, production is not using all resources efficiently and therefore production efficiency is not achieved. Any point beyond the frontier is unattainable given current resources and technology.

Production Efficiency Occurs When Production