If Harold must decrease production of some other good to increase production of good X, then Harold
A)is producing on his production possibilities frontier.
B)is producing outside his production possibilities frontier.
C)is producing inside his production possibilities frontier.
D)must prefer good X to any other good.
E)has too few capital goods.

Question

Quizplus · Accepted Answer

Harold is operating on his production possibilities frontier, which represents the maximum possible output combinations of two goods that can be produced with available resources and technology. To produce more of one good, he must reduce the production of another, indicating he is on the frontier.

If Harold Must Decrease Production of Some Other Good to Increase