Frances has a linear production possibility frontier when she produces tomatoes and green beans.If she uses all of her resources,she can produce 400 bushels of tomatoes or 800 bushels of green beans.Frances is NOT producing efficiently if she produces _____ bushels of tomatoes and _____ bushels of green beans.
A)400;0
B)200;400
C)200;200
D)0;800

Question

Quizplus · Accepted Answer

Frances is not producing efficiently if she is inside the production possibility frontier. Producing 200 bushels of tomatoes and 200 bushels of green beans means she is not using all her resources, as she could produce more of either good without sacrificing the other.

Frances Has a Linear Production Possibility Frontier When She Produces