When producing at a production efficient point,____________ .
A) we face a tradeoff and incur an opportunity cost
B) we can satisfy our all wants
C) the opportunity cost of another good is zero
D) our choice of the goods can be either on or within the production possibilities frontier

Question

When producing at a production efficient point,____________  .
A) we face a tradeoff and incur an opportunity cost
B) we can satisfy our all wants
C) the opportunity cost of another good is zero
D) our choice of the goods can be either on or within the production possibilities frontier

Quizplus · Accepted Answer

When producing at a production efficient point, we have to allocate our resources, which involves making choices and facing tradeoffs. This means that in order to produce more of one good, we have to give up some production of another good, which incurs an opportunity cost. Therefore, the correct option is A.

When Producing at a Production Efficient Point,____________