A machine can manufacture 1 unit of Good X in 2 hours and 1 unit of Good Y in 1 hour.Assuming that the machine is used for 10 hours,which of the following combinations will lie on the production possibilities curve?
A) 5 units of Good X and 2 units of Good Y
B) 3 units of Good X and 4 units of Good Y
C) 2 units of Good X and 2 units of Good Y
D) 6 units of Good X only

Question

Quizplus · Accepted Answer

The production possibilities curve represents the maximum output combinations that can be produced with available resources. For Good X, 1 unit takes 2 hours, so 3 units take 6 hours. For Good Y, 1 unit takes 1 hour, so 4 units take 4 hours. Together, 3 units of Good X and 4 units of Good Y take 10 hours, which is the total time available, making option B the correct choice.

A Machine Can Manufacture 1 Unit of Good X in 2