When a producer is trying to answer the economic question about how to produce a good, what is she trying to make sure happens?
A) that she operates on her production possibilities frontier
B) that her production possibilities frontier is linear
C) that her production possibilities frontier is concave
D) that she shifts her production possibilities frontier inward

Question

Quizplus · Accepted Answer

The producer aims to operate on her production possibilities frontier to ensure that resources are used efficiently, maximizing output given the available inputs and technology. This means producing at the highest possible point on the curve, where any more of one good can only be produced by giving up some of another good, indicating efficient use of resources. Choices B, C, and D do not directly address the efficiency or optimization goal in the context of how to produce.

When a Producer Is Trying to Answer the Economic Question