What Does It Mean If an Economy Is Producing Efficiently

question 163

Multiple Choice

What does it mean if an economy is producing efficiently?

• A) There is no way to produce more of one good without producing less of the other.
• B) It is possible to produce more of both goods.
• C) It is possible to produce more of one good without producing less of the other.
• D) It is not possible to produce more of one good at any cost.

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Definitions:

Seller

An individual or entity that offers goods or services in exchange for monetary compensation or other benefits.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Total Revenue

The total income received by a firm from the sale of its products or services.