If the maximum number of units of cloth produced is 300 and the
Maximum number of units of corn produced is 600, then with a MPLcloth
= 2, what is the number of workers in the economy?
A)100
B)200
C)150
D)600

Question

Quizplus · Accepted Answer

In order to produce 300 units of cloth with MPLcloth=2, we need 150 workers (since MPLcloth = output per worker = 2). As the maximum number of units of corn that can be produced is 600, we don't need more than 150 workers, since with more workers we would be sacrificing cloth production for corn production. Therefore, the best choice is C, with 150 workers.

If the Maximum Number of Units of Cloth Produced Is