Suppose Zia spends her time picking berries and apples.Her production set is described by the equation $x + 2 y = 40$ , where $x$ is the number of berries and y the number of apples.Which of the following statements will be true?
A)25 apples and 10 berries is achievable but inefficient.
B)10 berries and 2 apples is efficient but unachievable.
C)20 apples and 5 berries is an inefficient level of production.
D)30 berries and 5 apples is an efficient level of production.

Question

Quizplus · Accepted Answer

The equation x + 2y=40 is the production possibility frontier (PPF) for Zia's berry and apple production. Any point on the line is an efficient level of production because it exhausts all available resources (time) and produces the maximum output. 
Option A is incorrect because 25 apples and 10 berries will not be an inefficient level of production since it is still on the PPF.
Option B is incorrect because 10 berries and 2 apples is an unachievable point since it will be outside the PPF.
Option C is incorrect because 20 apples and 5 berries is an efficient level of production since it is a point on the PPF.
Option D is the answer since 30 berries and 5 apples is an efficient level of production since it is a point on the PPF.

Suppose Zia Spends Her Time Picking Berries and Apples x+2y=40x + 2 y = 40x+2y=40

Suppose Zia Spends Her Time Picking Berries and Apples $x + 2 y = 40$