When an economy is operating efficiently,the production of one more unit of a good will result in the production of less of another good because:

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Efficiency implies that all resources are already in use, meaning that in order to produce one more unit of a good, resources must be shifted away from the production of another good, resulting in less of that good being produced. This is reflected in the idea of the production possibility frontier (PPF), which shows the maximum possible production of one good given a certain level of production of another good, assuming that all resources are being used efficiently. A shift inward in the PPF would imply a decrease in the overall level of production, which goes against the assumption of an efficiently operating economy. Technology can certainly improve the production of both goods, and consumers may want more of both goods, but the limited availability of resources makes it necessary to allocate them efficiently.

When an Economy Is Operating Efficiently,the Production of One More