Production efficiency is achieved when
A)the production possibilities frontier shifts outward at a constant pace.
B)resources are not equally productive in all activities.
C)all resources are equally productive in all activities.
D)there are no tradeoffs.
E)we produce goods and services at the lowest possible cost.

Question

Quizplus · Accepted Answer

Production efficiency is achieved when we produce goods and services at the lowest possible cost. This means that we are using our resources in the most efficient way and minimizing waste. Choices A, B, and C are not correct as they do not specifically address the concept of producing at lowest cost. Choice D is also not correct as tradeoffs are necessary when allocating resources and making production decisions.

Production Efficiency Is Achieved When