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Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt.
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. Largetown CANNOT produce _____ shirts and _____ pairs of socks.
A)20; 0
B)40; 40
C)0; 40
D)10; 20

Question

Use the following to answer questions:
Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt. 
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. Largetown CANNOT produce _____ shirts and _____ pairs of socks.
A)20; 0 
B)40; 40 
C)0; 40 
D)10; 20

Quizplus · Accepted Answer

A linear production possibility frontier implies a constant opportunity cost. If Largetown can produce either 40 shirts or 40 pairs of socks, producing both 40 shirts and 40 pairs of socks simultaneously is not possible as it would exceed the production capacity.

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