Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is
A) 63.
B) 21.
C) 14.
D) 7.
E) 0.

Question

Quizplus · Accepted Answer

The maximum quantity of N that Teddy can produce occurs when M is 0. Setting M = 0 in the equation M = 21 - 3N gives 0 = 21 - 3N, solving for N gives N = 7.

Teddy's Production Possibilities Curve for Goods M and N Is