When producing at a production efficient point,
A) our choice of the goods can be either on or within the production possibilities frontier.
B) we can satisfy our all wants.
C) the opportunity cost of another good is zero.
D) we face a tradeoff and incur an opportunity cost.

Question

Quizplus · Accepted Answer

Producing at a production efficient point means operating on the production possibilities frontier, where resources are fully and efficiently utilized. At this point, producing more of one good necessitates producing less of another, hence incurring an opportunity cost and facing a tradeoff.

When Producing at a Production Efficient Point