The optimal point on a production possibilities curve is achieved where
A) the smallest physical amounts of inputs are used to produce each good.
B) each good is produced at a level where marginal benefits equal marginal costs.
C) large amounts of capital goods are produced relative to consumer goods.
D) large amounts of consumer goods are produced relative to capital goods.

Question

Quizplus · Accepted Answer

The optimal point on a production possibilities curve occurs where the marginal benefits of producing one more unit of a good are equal to the marginal costs of producing that unit, maximizing the overall benefit of production. Choices A, C, and D do not necessarily lead to the optimal point and are not the defining factors in determining the optimal point.

The Optimal Point on a Production Possibilities Curve Is Achieved