Figure 3-2

-Refer to Figure 3-2. If the production possibilities frontier shown is for 32 hours of production, then how long does it take Venezuela to make one pound of peanuts?
A)1/32 hour
B)1/4 hour
C)4 hours
D)3 hours

Question

Figure 3-2
 
-Refer to Figure 3-2. If the production possibilities frontier shown is for 32 hours of production, then how long does it take Venezuela to make one pound of peanuts?
A)1/32 hour 
B)1/4 hour 
C)4 hours 
D)3 hours

Quizplus · Accepted Answer

Given the production possibilities frontier for 32 hours of production, if Venezuela dedicates all its time to peanut production, it can produce 8 pounds of peanuts. Therefore, to calculate the time it takes to produce one pound, divide the total production time (32 hours) by the quantity produced (8 pounds), resulting in 4 hours per pound.

Figure 3-2 -Refer to Figure 3-2. If the Production Possibilities Frontier Shown