Figure 2.6

Figure 2.6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2.6. Suppose Vidalia is currently producing 60 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilised?

Question

Figure 2.6
  
Figure 2.6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2.6. Suppose Vidalia is currently producing 60 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilised?

Quizplus · Accepted Answer

In the production possibility frontier shown in Figure 2.6, the curve represents the maximum amount of roses and orchids that Vidalia can produce with its given resources. If Vidalia is currently producing 60 dozen orchids per period, the corresponding point on the production possibility frontier is point A, which intersects with the horizontal axis at approximately 50 dozen roses. Therefore, Vidalia is producing 50 dozen roses along with 60 dozen orchids when resources are fully utilized. Hence, the correct answer is choice B.

Figure 2.6 Figure 2.6 Above Shows the Production Possibility Frontier for Vidalia