If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, then
A)this situation would describe a point on a production possibilities frontier for the producer.
B)the outcome can be described as efficient.
C)there is no unemployment of resources.
D)All of these outcomes are correct.

Question

Quizplus · Accepted Answer

This situation would describe a point on a production possibilities frontier for the producer, as the producer is operating at maximum efficiency. This outcome can be described as efficient since there is no way to increase the output of one good without decreasing the output of the other. Additionally, there is no unemployment of resources since all available resources are being used to produce the two goods.

If It Is Not Possible to Increase the Output of One