Asked by Charlease Jordan on Apr 28, 2024
Verified
(Scenario: Linear Production Possibility Frontier) Use Scenario: Linear Production Possibility Frontier.What is the maximum number of pairs of socks Largetown can produce?
A) 40
B) 20
C) 2
D) 4
Linear Production
A production process where outputs change proportionally with changes in input levels.
Maximum Number
The highest value or quantity that is achievable or allowed in a given set or range of values.
- Understand the importance of production possibility frontiers (PPFs) and opportunity cost.
Verified Answer
TO
Trevor OlneyMay 03, 2024
Final Answer :
A
Explanation :
Given a linear production possibility frontier (PPF), the maximum number of any one good that can be produced is found at the point where all resources are allocated to the production of that good. The specific number (e.g., 40 pairs of socks) would be determined by the intercept of the PPF on the axis representing the production of socks, assuming the question stems from a graph or data not provided here.
Learning Objectives
- Understand the importance of production possibility frontiers (PPFs) and opportunity cost.