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

Question

Quizplus · Accepted Answer

Production efficiency occurs when production is on the production possibilities frontier, meaning that all resources are being used to their maximum potential and there is no waste of resources. If production is inside the production possibilities frontier, there is inefficiency and resources are being underutilized. If production is beyond the production possibilities frontier, it is not attainable with the given resources and technology.

Production Efficiency Occurs When Production ____________