A Point Outside a Production Possibilities Curve Indicates

question 205

Multiple Choice

A point outside a production possibilities curve indicates

• A) that resources are not being used efficiently.
• B) that resources are being used very efficiently.
• C) opportunity costs are constant.
• D) an output combination that is unobtainable with the current resource and technology levels.

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Definitions:

Competing Items

Products or services that serve as alternatives to one another in the marketplace, vying for the same consumers.

Complementary Items

Products or services that are used together or enhance each other's value, encouraging customers to purchase them as a pair or group.

Breadth and Depth

Refers to the variety and the range of products or services offered by a company or available in a market.

Intermediaries

Agents or businesses that act as a middleman in the distribution channel, moving products from the manufacturer to the consumer.