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 MPLcorn?
A)4
B)5
C)6
D)7

Question

Quizplus · Accepted Answer

The maximum production of cloth and corn suggests a trade-off. If MPLcloth is 2, then MPLcorn must be 4 to maintain the production possibility frontier, as the ratio of maximum outputs (300:600) is 1:2, matching the MPL ratio.

If the Maximum Number of Units of Cloth Produced Is