Production efficiency occurs
A) anywhere inside or on the production possibilities frontier.
B) when the total cost of production is minimized.
C) at all points on the production possibilities frontier.
D) at only one point on the production possibilities frontier.
E) at all points inside the production possibilities frontier.

Question

Quizplus · Accepted Answer

Production efficiency occurs at all points on the production possibilities frontier, as it represents the combination of goods that can be produced with the given resources and technology in the most efficient way possible. This means that all resources are being utilized fully and there is no waste or inefficiency in the production process.

Production Efficiency Occurs