Figure 3-5
Hosne's Production Possibilities Frontier
Merve's Production Possibilities Frontier
-Refer to Figure 3-5.If Hosne and Merve both spend all of their time making wallets,then total production is
A)7 wallets.
B)8 wallets.
C)14 wallets.
D)28 wallets.

Question

Figure 3-5
Hosne's Production Possibilities Frontier
Merve's Production Possibilities Frontier  
-Refer to Figure 3-5.If Hosne and Merve both spend all of their time making wallets,then total production is
A)7 wallets. 
B)8 wallets. 
C)14 wallets. 
D)28 wallets.

Quizplus · Accepted Answer

The production possibilities frontier (PPF) for Hosne and Merve shows us the maximum amount of wallets they can produce given their resources and technology. The points on the PPF represent efficient production, while the points inside the PPF represent inefficient production.

In this case, if both Hosne and Merve spend all of their time making wallets, they can produce a total of 14 wallets (point M). Any other combination of production would be less efficient and result in a lower total output. Therefore, the best choice is for both of them to specialize in making wallets and produce 14 wallets in total.

Figure 3-5 Hosne's Production Possibilities Frontier