If a Producer Is Operating at an Inefficient Point on a Production

question 58

Multiple Choice

If a producer is operating at an inefficient point on a production possibilities curve using currently available resources, that producer:

• A) cannot produce more of one good without giving up some of the other good.
• B) can produce more of one good without producing less of the other good.
• C) must be at an unattainable point on the production possibilities curve.
• D) must be specializing in activities for which it has a comparative advantage.