If Sam is producing at a point on his production possibilities frontier, then he
A)is unaffected by costs and technology.
B)is not subject to scarcity.
C)can produce more of both goods.
D)cannot produce any more of either good.
E)can increase the production of one good only by decreasing the production of the other.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum combination of goods or services that can be produced with a fixed amount of resources. When producing at a point on the PPF, resources are fully utilized, and to increase the production of one good, production of the other must decrease due to the scarcity of resources. This is known as the principle of opportunity cost.

If Sam Is Producing at a Point on His Production