If Sam is producing at a point on his production possibilities frontier,then he
A)cannot produce any more of either good.
B)is unaffected by costs and technology.
C)can produce more of both goods.
D)is not subject to scarcity.
E)can increase the production of one good only by decreasing the production of the other.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum combination of goods or services that can be produced with a given set of resources and technology. When producing at a point on the PPF, an economy (or individual, in this case, Sam) is operating efficiently, meaning that to increase the production of one good, it must reduce the production of another due to limited resources. This trade-off is a fundamental concept in economics, illustrating the opportunity cost of allocating resources to one use over another.

If Sam Is Producing at a Point on His Production