If a country is producing efficiently, it will produce __ its production possibilities curve. If...

Question:

If a country is producing efficiently, it will produce _____ its production possibilities curve.

If a country is producing inefficiently, it will produce _____ its production possibilities curve.

a. above; on

b. above; below

c. below; on

d. on; below

Production possibilities curve

Production possibilities are the various product combinations that can be possibly produced by the firm or economy with its available resources. The resources give two goods output and the firm can use its full capacity. These combinations are depicted by profit-maximizing full capacity utilization on this curve.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer


d. on; below

If the firm is producing using its full production capacity with the least cost possible, then the firm is on its production...

See full answer below.


Learn more about this topic:

Loading...
Production Possibilities Curve: Definition & Examples

from

Chapter 11 / Lesson 28
34K

Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.


Related to this Question

Explore our homework questions and answers library