If a Given Production Combination Is Efficient, Then It Must

question 108

Multiple Choice

If a given production combination is efficient, then it must be:

• A) beyond the production possibilities curve.
• B) on the production possibilities curve.
• C) either an attainable or an unattainable point.
• D) the best combination out of all possible combinations.

---

Definitions:

Utility Function

A formula that translates the bundle of goods and services selected by a consumer into a numerical value representing satisfaction or utility.

Coconut Consumption

Refers to the act of consuming coconuts or products derived from coconuts, influencing economic measures in regions where coconuts are a major commodity.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has significant influence on price.

Marginal Rate of Substitution

The ratio at which a consumer can exchange quantities of one good for another while preserving the same degree of contentment.