Production efficiency occurs when production
A) is at a point beyond the production possibilities frontier.
B) is on the production possibilities frontier or inside it.
C) is at any attainable point.
D) is on the production possibilities frontier.

Question

Quizplus · Accepted Answer

Production efficiency occurs when an economy is operating on its production possibilities frontier (PPF), meaning it cannot produce more of one good without producing less of another. This represents the most efficient allocation of resources.

Production Efficiency Occurs When Production