When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because
A)resources are specialized and are not shiftable.
B)resources are limited.
C)the structure of demand is fixed at any point in time.
D)material wants are insatiable.

Question

Quizplus · Accepted Answer

When an economy is operating at maximum efficiency, resources are fully utilized and limited, so producing more of one good requires reallocating resources from the production of another good.

When an Economy Is Operating with Maximum Efficiency, the Production