Which of the Following Statements Is True of the Efficiency

Multiple Choice

Which of the following statements is true of the efficiency frontier?

A) To maximize its profitability, a firm should avoid a position that lies on the efficiency frontier.
B) Not all positions on the efficiency frontier are viable.
C) The efficiency frontier is a function of the cost and revenue of a product.
D) Positions inside the frontier are more efficient than the positions that are located on the frontier.
E) It is always concave in shape because of diminishing returns.