Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved
A) production efficiency.
B) the highest opportunity cost.
C) the lowest marginal cost.
D) the highest marginal benefit.

Question

Quizplus · Accepted Answer

When a country is producing at a level where it cannot produce any more of one good without giving up some production of another, it has achieved production efficiency. This means that the country has allocated its resources in the most efficient way possible to maximize output. Therefore, option A is the correct answer. Option B is incorrect because the concept of opportunity cost refers to the trade-offs a country faces when producing one good instead of another, whereas the question explicitly states that there is no opportunity for increased production of jets without giving up corn. Option C refers to the additional cost of producing one more unit, which is not relevant here. Option D refers to the additional benefit received from consuming one more unit, which is also not relevant to this question.

Suppose the Country of Popcorn Produces Only Jets and Corn