Point C on the production possibilities frontier in the above diagram illustrates
A) a point that achieves production efficiency.
B) a combination of goods and services that cannot be produced efficiently
C) all goods and services that are desired but cannot be produced due to scarce resources.
D) a production point that has underutilization of resources
Question 2
Refer to the figure above. Total welfare can be increased by ________.
A) increasing output above Q1
B) reducing output below Q1
C) lowering the market price below P1
D) increasing the market price above P2