When Society Produces the Combination of Goods and Services on the PPF

Multiple Choice

When society produces the combination of goods and services on the PPF that it values the most highly,society has

A) achieved only production efficiency and definitely not allocative efficiency.
B) achieved only allocative efficiency definitely not production efficiency.
C) achieved both production efficiency and allocative efficiency.
D) achieved a free lunch.
E) perhaps achieved production efficiency and has perhaps achieved allocative efficiency.