If a given production combination is efficient,then it must be
A) beyond the production possibilities curve.
B) possible to expand production of one good without lowering the amount of the other.
C) on the production possibilities curve.
D) either an attainable or unattainable point.
E) the best combination out of all possible combinations.

Question

Quizplus · Accepted Answer

An efficient production combination means that it is producing the maximum possible output of one good given a certain level of production of the other good without using more resources than available. This can only occur on the production possibilities curve, as any point inside the curve represents an inefficient use of resources and any point outside the curve is unattainable with current resources. Therefore, choice C is the correct answer as an efficient point must be on the production possibilities curve.

If a Given Production Combination Is Efficient,then It Must Be