Table 3-13
The following table contains some production possibilities for an economy for a given month.

-Refer to Table 3-13.If the production possibilities frontier is a straight line,then "?" must be
A) 100.
B) 150.
C) 200.
D) 250.

Question

Table 3-13
The following table contains some production possibilities for an economy for a given month.
 
-Refer to Table 3-13.If the production possibilities frontier is a straight line,then "?" must be
A) 100. 
B) 150. 
C) 200. 
D) 250.

Quizplus · Accepted Answer

If the production possibilities frontier is a straight line, it means that resources are perfectly substitutable and can be allocated efficiently across the two goods. Looking at the table, the highest quantity of one good that can be produced is 100, and the highest quantity of the other good that can be produced is also 100. Therefore, the maximum total output that can be achieved is 200. Thus, the "?" must be equal to 200.

Table 3-13 The Following Table Contains Some Production Possibilities for an Economy