Each and every point along a production possibilities curve represents an efficient output option for an economy.

Question

Quizplus · Accepted Answer

Each point along the production possibilities curve represents the maximum possible output combination of two goods, given the resources and technology available. Therefore, each point is considered efficient because any point inside the curve represents an underutilization of resources and any point outside the curve is currently unattainable.

Each and Every Point Along a Production Possibilities Curve Represents