Asked by Shalonda Lyons on Jun 27, 2024

verifed

Verified

Locating a point on a utilities possibilities frontier gives you information about:

A) both equity and efficiency.
B) equity but not efficiency.
C) efficiency but not equity.
D) profitability but not efficiency.

Utilities Possibilities Frontier

A graphical representation showing the maximum amount of two or more goods or services that can be produced given a set of resources, highlighting the trade-offs and opportunity costs.

Equity

Fairness or justice in the way people are treated or how resources are distributed.

Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste or expense, often associated with productivity and economic contexts.

  • Examine the implications of points on, within, and outside the utility possibilities curve regarding efficiency, equity, and practicability.
verifed

Verified Answer

MR
Marco Ruiz TrellesJul 02, 2024
Final Answer :
C
Explanation :
Locating a point on a utilities possibilities frontier gives you information about efficiency but not equity. The utilities possibilities frontier represents the efficient combinations of outputs that a utility company can produce with its available inputs. The location of a specific point on the frontier shows the trade-off between producing different combinations of outputs efficiently. However, it does not provide information about whether the distribution of those outputs is equitable or not.