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Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt.
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. What is the maximum number of pairs of socks Largetown can produce?
A)40
B)20
C)2

Question

Use the following to answer questions:
Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt. 
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. What is the maximum number of pairs of socks Largetown can produce?
A)40 
B)20 
C)2

Quizplus · Accepted Answer

In a linear production possibility frontier, the maximum number of one good that can be produced is determined by the intercept on the axis representing that good. Here, the maximum number of pairs of socks Largetown can produce is 40.

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