Asked by Natalia Smart on May 10, 2024
Verified
From any point within the production possibilities frontier,
A) the only way to increase production of one good is to decrease production of the other.
B) it is possible to increase both people's utility.
C) it is possible to increase output of both goods.
D) any move will necessarily decrease production of some good.
Production Possibilities Frontier
A curve representing the maximum combination of goods or services that can be produced with a fixed set of resources and technology.
Utility
In economics, utility means the total satisfaction received from consuming a good or service.
- Understand the concept of the production possibilities frontier and its implications for production efficiency and opportunity cost.
Verified Answer
ON
Ongelique navarreMay 16, 2024
Final Answer :
C
Explanation :
The production possibilities frontier represents the maximum output that can be produced given the available resources and technology. Therefore, any point within the production possibilities frontier represents an efficient allocation of resources. It is possible to increase the output of both goods by using resources more efficiently or by increasing the amount of resources available. This could be achieved by improving technology, increasing investment, or expanding the labor force, among other strategies. Therefore, Option C is the best choice.
Learning Objectives
- Understand the concept of the production possibilities frontier and its implications for production efficiency and opportunity cost.