A country produces tennis rackets and tennis balls using only labor as input. One unit of labor can produce one tennis racket or four tennis balls, and the country has 200 units of labor. If the country is operating on its production possibility frontier (PPF) and producing 50 rackets, then how many balls is it producing?

Question

Quizplus · Accepted Answer

If the country is producing 50 rackets, it uses 50 units of labor for rackets, leaving 150 units of labor for balls. Since one unit of labor produces four balls, 150 units produce 600 balls.

A Country Produces Tennis Rackets and Tennis Balls Using Only