Figure 3-5
Hosne's Production Possibilities Frontier
Merve's Production Possibilities Frontier
-Refer to Figure 3-5.If the production possibilities frontier shown for Merve is for 8 hours of work,then how long does it take Merve to make one purse?
A)1/2 hour
B)2 hours
C)4 hours
D)8 hours

Question

Figure 3-5
Hosne's Production Possibilities Frontier
Merve's Production Possibilities Frontier  
-Refer to Figure 3-5.If the production possibilities frontier shown for Merve is for 8 hours of work,then how long does it take Merve to make one purse?
A)1/2 hour 
B)2 hours 
C)4 hours 
D)8 hours

Quizplus · Accepted Answer

According to Merve's production possibilities frontier, she can produce 2 purses and 12 wallets in 8 hours of work. Therefore, it would take her 8/2 = 4 hours to make one purse. The best choice would be to produce at point B, where she can produce 1 purse and 6 wallets in 4 hours of work, as this would maximize her output of purses while still allocating some time towards producing wallets.

Figure 3-5 Hosne's Production Possibilities Frontier