Consider the production possibilities frontier displayed in the figure shown. If a society with this frontier chooses to produce 200 bushels of apples, it can produce no more than:
A) 20 watermelons.
B) 15 watermelons.
C) 10 watermelons.
D) 5 watermelons.

Question

Consider the production possibilities frontier displayed in the figure shown. If a society with this frontier chooses to produce 200 bushels of apples, it can produce no more than:
A) 20 watermelons. 
B) 15 watermelons. 
C) 10 watermelons. 
D) 5 watermelons.

Quizplus · Accepted Answer

This can be seen by following the production possibilities frontier (PPF) from the 200 bushels of apples point to the y-axis (which represents watermelons). At this point, the PPF intersects the y-axis at around 10 watermelons. This means that if the society produces 200 bushels of apples, it can produce no more than 10 watermelons. Therefore, the best answer is C) 10 watermelons.

Consider the Production Possibilities Frontier Displayed in the Figure Shown