Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
Alice's Production Possibilities Frontier
Betty's Production Possibilities Frontier
-Refer to Figure 3-10.Both Alice and Betty
A)face a constant trade-off between producing pitchers of lemonade and pizzas.
B)can produce more pizzas than pitchers of lemonade if they devote all of their time to pizza production.
C)would benefit from specializing in lemonade production.
D)would benefit from specializing in pizza production.

Question

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
Alice's Production Possibilities Frontier
Betty's Production Possibilities Frontier  
-Refer to Figure 3-10.Both Alice and Betty
A)face a constant trade-off between producing pitchers of lemonade and pizzas. 
B)can produce more pizzas than pitchers of lemonade if they devote all of their time to pizza production. 
C)would benefit from specializing in lemonade production. 
D)would benefit from specializing in pizza production.

Quizplus · Accepted Answer

Both Alice and Betty face a constant trade-off between producing pitchers of lemonade and pizzas, as indicated by the linear production possibilities frontier in Figure 3-10.

Figure 3-10 Alice and Betty's Production Possibilities in One 8-Hour Day