Table 2.3
Production Choices for Dina's Cafe

-Refer to Table 2.3. Assume Dina's Cafe only produces sliders and hot wings. A combination of 80 sliders and 75 hot wings would appear:
A)along Dina's production possibility frontier.
B)inside Dina's production possibility frontier.
C)outside Dina's production possibility frontier.
D)at the vertical intercept of Dina's production possibility frontier.

Question

Table 2.3
Production Choices for Dina's Cafe
 
-Refer to Table 2.3. Assume Dina's Cafe only produces sliders and hot wings. A combination of 80 sliders and 75 hot wings would appear:
A)along Dina's production possibility frontier. 
B)inside Dina's production possibility frontier. 
C)outside Dina's production possibility frontier. 
D)at the vertical intercept of Dina's production possibility frontier.

Quizplus · Accepted Answer

The combination of 80 sliders and 75 hot wings is inside Dina's production possibility frontier, which means that it is achievable but not the most efficient use of resources. To produce more of one good, Dina would have to give up some production of the other good. The optimal production choice would be at the point where the production possibility frontier is tangent to the highest possible indifference curve, which maximizes the total utility of both goods.

Table 2.3 Production Choices for Dina's Cafe