Question

If a product is operating on his production possibilities frontier, he is said to be operating ____.

a. Right
b. Toward the origin
c. Efficiently
d. Decreasing

Answer 1

If a product is operating on its production possibilities frontier, it is said to be operating efficiently.

Step-by-step explanation:

When a product is operating on its production possibilities frontier, it is said to be operating efficiently. This means that the resources are being used in a way that maximizes output and there is no way to produce more of one good without producing less of another. Operating efficiently on the production possibilities frontier reflects economic efficiency and the optimal allocation of scarce resources.