The efficient production points for the production possibilities frontier, all lie on the actual frontier itself.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum possible combinations of two goods that can be produced with the given resources and technology. The points on the frontier indicate the most efficient use of resources to produce the goods. Any point inside the frontier represents an inefficient use of resources, while any point outside the frontier is unattainable with the given resources and technology. Therefore, all efficient production points lie on the actual frontier itself.

The Efficient Production Points for the Production Possibilities Frontier, All