Figure 3-5
Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier
-Refer to Figure 3-5.If Puneet and Chirag both spend all of their time making wallets,then total production is

Question

Figure 3-5
Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier  
-Refer to Figure 3-5.If Puneet and Chirag both spend all of their time making wallets,then total production is

Quizplus · Accepted Answer

The production possibility frontiers of Puneet and Chirag intersect at point X, which represents the combination that maximizes the production of both goods. At point X, Puneet can produce 4 wallets and 4 belts, while Chirag can produce 3 wallets and 3 belts. Therefore, if they both specialize in making wallets, they can produce a total of 7 wallets (4+3).

Figure 3-5 Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier